Economics · Cost-Benefit Analysis
Which of the following statements are correct about Benefit-Cost Ratio (BCR) analysis? 1. If a project has a BCR greater than 1.0, it is expected to deliver a positive net present value (NPV). 2. If a project's BCR is less than 1.0, the project's costs outweigh the benefits, and it should generally be rejected. 3. The BCR is an indicator showing the relationship between the relative costs and benefits of a proposed project, expressed in monetary or qualitative terms. 4. BCR is a ratio used in a cost-benefit analysis to summarize the overall relationship between the relative costs and benefits of a proposed project.
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