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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With B
  5. Benefit-Cost Ratio

Benefit-Cost Ratio

Definition of 'Benefit-Cost Ratio'

A measure of present value per £ invested. Benefit-Cost ratio = Net present value divided by Initial outlay.

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Related Terms

Acid RatioAcid Test RatioQuick Asset RatioPE RatioPrice Earnings RatioQuick RatioClaims Processing Unit (CPU)Market to Book RatioCurrent Cost AccountingAbsolute AdvantageCost-Benefit AnalysisDistortionBook-to-Market Equity RatioBook-to-Market RatioBootstrapping GameCurrent RatioMBRPERealisation RatioRealization Ratio

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