ABSTRACT

The execution of a project costs money. But a project is usually started to achieve more turnover. A Costs-Benefits Analysis is important if the management has to take a decision whether a certain proposal or project will or will not take place. Although some projects are obligatory due to legal regulations for example, most projects must deliver benefits. The costs consist in various components for which the costs are charged to the project. Establishing the benefits is more difficult than establishing the costs. To cost the project, an analysis of the benefits is necessary. The benefits often consist of less concrete items for which an estimate has to be made. With the Costs-Benefits Analysis, it is about the enterprise knowing whether the project will, in the financial sense, produce more than it costs and when the investments will be paid back.