Cost/benefit analysis

The efficiency of investment projects should always be examined critically. It is important to check whether the resultant benefit is actually higher than the anticipated costs. One decision-making instrument is the cost/benefit analysis.

This is an objective economic evaluation method of investment measures. The goal, besides ensuring the efficient use of existing resources, is to analyse the change in economic welfare. Business and economic aspects are considered in calculation.

The result of the cost/benefit analysis is the difference between costs and benefits (with investment measure) and the reference case (no investment measure). An investment is then economically profitable when the cost-benefit ratio exceeds the values of the reference case in a specific research period.

To be able to compare the costs and benefits, the sub-balances are measured in monetary values – as far as possible and appropriate.

Emergent Actio conducts cost-benefit analyses during research and development projects as well as for public clients.

We will be happy to inform you on our range of services and present project examples.