Abstract

Investment projects are complex, long-term business ventures which engage considerable financial resources. Analyzing an investment idea and a large number of alternatives on the road to a final solution, requires a systematic approach and the application of modern quantitative statistic and optimization methods. A flowchart of activities is given in documents of pre-investment and investment studies, covering all phases of the project life cycle. A cost-benefit analysis provides strong support in evaluating projects as successful business ventures and in evaluating project solutions. Indeed, this analysis is still rarely applied in our country, unlike the practice in developed countries. The methods and techniques of the cost-benefit analysis provide a criterion selection of alternative solutions and strong quantitative predictions of a business venture flow; they optimize revenues and expenditures and strongly support correct decisions. of investment idea initiators The best is to do the cost- benefit analysis in the stage of pre-investment studies and to examine alternative solutions later, during the preparation of investment studies.

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