Performing Cost-Benefit Analysis for Funding Projects

  • Lucia MOROSAN-DANILA ”Stefan cel Mare” University of Suceava, Suceava, Romania
DOI: https://doi.org/10.18662/lumproc.89
Keywords: Cost-Benefit Analysis; financing, funding projects; benefit; risk.

Abstract

Cost-Benefit Analysis is an analytical tool used to estimate (in terms of benefits and costs) the socio-economic impact due to the implementation of certain actions and / or projects. The impact has to be assessed against predetermined objectives, with the analysis usually taking place by taking into account all individuals affected by the action, either directly or indirectly. The paper presents the importance of Cost-Benefit Analysis for companies that want to access non-reimbursable funds (from the European Commission's budget or national budget), but also its impact on the decision of the financiers to grant funds to the applicant companies. Cost-Benefit Analysis forecasts will positively impact company’s activity? Is CBA real or shows processed information only to determine the financer to give the financing? Who really benefits from the forecasts? These are questions stay unanswered, because the risks and uncertainties to which companies are subjected daily, does no guaranties for future developments and situation, non the less a CBA. The CBA stay only a prediction.  

References

[1] European Commission, General Directorate for Regional Policy, Guidance for Cost-Benefit Analysis of investment projects, 2008.
[2] Kyfiak V., Luchyk V., Koroliuk Y., Luchyk S., Losheniuk I., Luchyk M., Korop B., Grygorenko V., Kyfiak O., Slusarciuc M., Morosan Danila L., Nastase C. Forecasting of cross-border regions development: scenario approach. Suceava: Editura Universitatii ”Stefan cel Mare”; 2017
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[5] Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999
[6] Government Decision no. 28 of January 9, 2008 regarding the approval of the framework content of the technical and economic documentation related to the public investments, as well as the structure and methodology for the elaboration of the general estimate for investment objectives and intervention works.
Published
2018-12-11
How to Cite
MOROSAN-DANILA, L. (2018). Performing Cost-Benefit Analysis for Funding Projects. LUMEN Proceedings, 6(1), 396-405. https://doi.org/10.18662/lumproc.89
Issue
Vol 6 No 1 (2018): Strategies and Development Policies of Territories: International, Country, Region, City, Location Challenges
Section
Accounting and Finance Role in Economic Processes

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