Cost-effectiveness can be calculated for any project. The result will depend only on the selected factors that affect the final performance indicator. By the final indicator, it will be possible to judge whether it is worth developing and implementing the project.
Instructions
Step 1
We determine the generalizing indicators of socio-economic efficiency. This group includes: integral income, payback period, profitability index. If our innovation is envisaged for the production of modernized products, then the following indicators must be included: quality indicator, competitive price, volume of import-substituting products and volume of export earnings.
Step 2
It is necessary to calculate the result of the inflow of funds (profit) from the implementation of the project. The profit must include: proceeds from sales in the external and internal markets, direct financing, indirect financial results, income from other sales.
Step 3
We calculate all the costs of the project. It is calculated as the sum of the costs of the production and operation of the project.
Step 4
We take into account the factors of time. The funds available at the time of project implementation are of greater value than in subsequent years.
Step 5
Consider related results. Implementation of the project, with equal effects with other analogues on the market. The result includes: the difference in the cost of production costs, a decrease in obvious damage, the volume of non-produced products, with the equipment idle.
Step 6
Take into account the risk and uncertainty, as well as the further path of development, in case of an unfavorable outcome.
Step 7
It should be noted that the definition of efficiency abroad is a very urgent area of concern. But the foreign method has a number of disadvantages:
- there is no reasonable approach to the choice of the calculation period;
- there are no recommendations on how to take into account losses when changing working equipment;
- the problem of annual inflation has not been finalized.
Thus, it is better to use a methodology that has been proven in practice by many users.
