Savings-to-investment ratio
Life Cycle Costing (BG 67/2016), written by David Churcher and Peter Tse and published by BSRIA in March 2016, defines the savings-to-investment ratio (SIR) as: ‘A measure of economic performance for a project, particularly where an alternative solution proposes additional capital investment in return for operational savings. In life cycle costing analysis, the savings-to-investment ratio can be used to help select independent projects where the available resources will not stretch to the most economically advantageous solution for every project being proposed.’
--BSRIA
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