Client’s need

The business idea is realized only in case the author makes it clear for himself as well as for potential investors. The answers to the following questions should be found:

• What are the real opportunities for the implementation of the business project?
• What should be the initial investments?
• What is the payback period of the project?

Essence of the cost-benefit analysis

Profitability of the project is evaluated by comparing costs of the project and expected income from the project. The following methods are used in the frames of the cost-benefit analysis:

• payback period – this method measures, how long it takes to repay the investments into the project;
• net present value – this method shows the difference between the current net income from the project and the initial investments;
• internal rate of return – this method answers the question what the profit from the project is;
• modified internal rate of return – this method compares the final profit from the project and initial investments considering the time when the project is finished;
• break-even point – this method calculates minimum volume of production at which the profit is received.

Value for the client

As a result of the cost-benefit analysis an entrepreneur may:

• evaluate the project investments;
• estimate the profitability of the project;
• estimate the payback period;
• determine the profitability of different volumes of production/services;

Experience in the following areas

• Biotechnology;
• Construction;
• Production of construction materials;
• Educational institutions;
• Hotels and SPA;
• Light industry;
• Fuels’ production;
• Food industry;
• Transport;
• Railways.