Benefit-Cost Ratio & Return-on-Investment: Project Selection - Part 3 | PMP | PMBOK

*** Apologies: Error in the lesson ***
There is a mistake in the calculations of Present Value for Year #1 and #2 in the example used to explain BCR and ROI. This has no impact on the concepts (ROI, BCR and NVP) explained in this lesson.
Nilakantha Panigrahi: Thank you for pointing out this mistake to me.
Benefit-Cost Ratio or BCR is the ratio of Benefit to Cost. Return-on-Investment or ROI is the ratio of Return to Investment. These are closely related, but each provides a unique insight. BCR is focused on total gains, whereas, ROI is focused on net gain.
In this lesson we will cover:
1. What is BCR?
2. What is ROI?
3. How can we calculate the BCR?
4. How can we calculate the ROI?
5. How are ROI, BCR and NPV related to each other?
6. Sample Problems with solutions
#SunnySensei

[@nilakanthapanigrahi6931]

sir, in example there is mistake in calculation... concept is explained in clear manner

[@cynrooney8411]

Yes, I see it too. $800 over 2 years of interest at 10% annum is not $499. It is $661, if we are rounding numbers. At least the error still made it look like a good investment. ;)

[@sunny.sensei]

You are right. Thank you for pointing out the error. I shall put a note in the description explaining the error.

[@sunny.sensei]

Thanks for pointing out the error and you are right about the investment looking good too 😎

[@unimportatn]

thx u for the sharing, but may i ask a question, for pv -$100, -$50 how do u get it?

[@sajjadwazir4286]

hello bro, I like your video on KZbin and fb page. can you sent me some related example or project management related work with solved example? I am very thanksful to you.

[@sunny.sensei]

Thank you. Sajjad. I am glad that you liked my lessons. Each one of my lessons include some sample problems. Please refer to those to test your knowledge.