Many researchers working on livestock systems at the micro level will be called upon to participate in analysis of a livestock project. Regardless of the role played, a basic understanding of "the big picture" in project analysis is useful. Consequently, the major purpose of this chapter is to provide an overview of how a project analysis is carried out and its major parts. Many important details, covered very well in Brown (1979) and Gittenger (1972) among others, are thus left out. A further objective in this chapter is to show how the budgeting tools and formulas presented earlier can be used in project analysis. In fact, although the procedures and idiosyncrasies in determination of the various measures provided by project analysis receive the most attention, the practical reality is that computation of the measures is really quite simple—the hard part is project design and budgeting. In effect, computations in project analysis are a micro problem in a macro context.