Standard Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building Systems
|Publication Date:||10 October 2002|
|ICS Code (Contractual aspects):||91.010.20|
This practice presents a procedure for calculating and interpreting
benefit-to-cost ratios (BCR)
A basic premise of the BCR and SIR methods is that future as well as present benefits and costs arising from a decision are important to that decision, and, if measurable in dollars, should be included in calculating the BCR and SIR.
Dollar amounts used to calculate BCR and SIR are all discounted, that is, expressed in time-equivalent dollars, either in present value or uniform annual value terms.