A. The costs are 2.1 times the benefits.
B. The profit is 2.1 times the costs
C. The payback is 2.1 times the costs.
D. The cost is 2.1 times the profit.
The correct answer is D, but I would like to know why is it not A. I was under the impression that this ratio is not necessarily profit.
Option A is correct. Remember in CBR analysis we consider the Gross Profile not the Net Profit. Option D taking about Profile (Net Profit) and option A is talking about benefits (Gross Profit). We have a similar question in Rita Page 121
Hope this helps
In my opinion , there is not a single correct answer. Profit is not same as benefit.
This is to remember BCR = ((Benefit/Revenue/ Payback period amount)/ Project Cost
sometimes they included Profits .Profit is something you have net amount to be received after all costs are being paid. It is not the same as revenue. Revenue the money you generate after investing the amount.
BCR>1 to be an option selecting projects.The more the better.
In my opinion, 1 is the right choice.
but as i mentioned in last weeks clarification session we should always look for BCR ratio where Benifit is divided by cost.
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/
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