¥B-C for one or several alternatives
¥Compares both benefits & costs
–Bt/(1+r)t, where Bt is the benefit to be received in year t, and r is the discount rate
–Ct/(1+r)t, where Ct is the cost to be received in year t, and r is the discount rate
¥             n
–B/C =   ·     Bt/(1+r)t , where B/C = present value B/C ratio
–                   t=0 Ct/(1+r)t
¥What is to be B-C goal? 
–max.  net PV (PVB-PVC = net PV)? 
–Max. B/C ratio?     
¥How to choose r?  How to treat Ònegative effectÓ  –  as positive costs or negative benefits?  How to treat scale effects?
B-C Analysis continued: