Cost-benefit analysis is one of the most frequently used and one of the most effective tools for the economic analysis of a project or investment, in which all the costs and benefits of the project are thoroughly analysed using the prescribed methodology. It is complementary to the feasibility study and they mutually clarify the justification of financing. They represent the foundation for adequate decision-making. Cost-benefit analysis consists of the financial and economic part. Financial analysis estimates whether the cash flow of the future project generates relevant revenues. Economic analysis shows economic sustainability of the project by calculating additional benefits for society that are generated as a result of the project execution. Feasibility study and cost-benefit analysis are part of declarations required for obtaining EU co-funding and foundation for decision-making of authorities on the funding of the project.
