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Eurokleis has developed its own cost-benefit analysis methodology that can be applied assisted by our experts or self-managed.

Eurokleis’ methodology evaluates efficiency and efficacy of acquisition costs, implementation and operational costs, maintenance costs and benefits arising from the practical use of the system.

Eurokleis develops several cost-benefit analysis services:

  • social impacts 
  • economic impacts
  • technological impacts
  • environmental impacts.

 

The context

 

The cost-benefit analysis (CBA) is a technique used to evaluate the potential advantages achievable by investments and its related costs. The execution of the project can be done by two broad categories of economic actors: the private operator and the public one. The private operator compares costs and revenues resulting from the implementation of the project with the profits’ maximization goal.

On the contrary, the public operator not consider only the financial aspects related to the actual expenditure incurred for the project, but he identifies also a range of costs and benefits related to the social welfare maximization.

If the investment is private, the cost-benefit analysis assumes the characteristics of a financial analysis: it evaluates cash flows caused by investments over the years (positive with respect to revenues, negative to costs). If the evaluation concerns a public investment, this is an economic analysis: to not only evaluate cash flows, but also costs and benefits in a broader sense, relative to the whole community. The cost-benefit analysis evaluates all the disadvantages (costs) and all the advantages (benefits) triggered by investments to the analysed population.

In a cost-benefit analysis, the multi-criteria analysis can generate several benefits:

  • to assess the sustainability of multidimensional variables
  • to evaluate different types of data analysed with the same structure, varying only on the degree of certainty
  • to give a transparent representation of the key elements.
 

The cost-benefit analysis evaluates the economic impacts in terms of operating costs and business conduct, market forecasting and competitiveness, impact on consumers and on the society. For the assessment of social impacts, it analyses the potential impact in terms of labor force growth,  on quality of work routines, social inclusion and share capital of its users increasing and the  activities of collaboration.

Cost-benefit analysis can also evaluate the environmental impacts in terms of energy and paper savings,  energy dispersion,  storage, movies, CDs, DVDs savings. Finally, regarding the evaluation of the technological impacts, the cost-benefit analysis evaluates the efficiency and effective use of technology, the total cost of activities, potential accidents, the amount of data recorder, the functionality of tools, its productivity, error rate, accessibility and availability of technological tools.

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