Benefit-cost ratio

{
  "id": "MLC-T-ENV-002996",
  "term": "Benefit-cost ratio",
  "field": "Environment",
  "definition": "The ratio of the net present value (NPV) of benefits associated with a project or proposal, relative to the NPV of the costs of the project or proposal. The ratio indicates the benefits expected for each dollar of costs. Note that this ratio is not an indicator of the magnitude of net benefits. Two projects with the same benefit-cost ratio can have vastly different estimates of benefits and costs.",
  "subject": "General environmental",
  "references": [
    "Preparing Economic Analyses Glossary"
  ],
  "url": "https://mlchart.com/terminology/environment/benefit-cost-ratio/"
}