- Benefit/Cost ratio

The B/C ratio is used in economic analysis where the economic payability is determined by calculating the ratio of the present worth of the incurred benefit to the present worth of the incurred cost. The system is economically viable if the B/C ratio is greater than one. In this study, as per Equation (5), the B/C ratio was calculated to be 6.39 based on the ratio of the incurred benefit and incurred cost of using conventional and automated methods over ten years (expected service life of GEWPro).

$$\begin{aligned} \text{Benefit/Cost ratio (B/C)}\\ = \text{Present worth of benefit / Present growth of cost} \\ = (\text{EP}\_{\text{C}} - \text{EP}\_{\text{G}}) / \{(\text{IP}\_{\text{G}} - \text{IP}\_{\text{C}}) + (\text{MP}\_{\text{G}} - \text{MP}\_{\text{C}})\} \\ = (\ $3, \$ 26, 789.7 - \ $3, 016, 470.2) / \{(\$ 60, 567.7 - \ $14, 994.5) \\ + (\$ 6139.5 + \ $14, 359.4 + \$ 12, 807.8 + \ $5701) - \$ 4665.5\} \\ = 6.39 \end{aligned} \tag{5}$$
