In which circumstance would a benefit cost ratio lead people to decide that a project is not worth doing?

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2026-07-15 08:35

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A benefit-cost ratio (BCR) would lead people to decide that a project is not worth doing if the ratio is less than 1. This indicates that the costs of the project outweigh the expected benefits, suggesting that resources could be better allocated elsewhere. For example, if a project has a BCR of 0.8, it implies that for every dollar spent, only 80 cents in benefits is generated, signaling that the investment is not justified.

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