How Do I Conduct an Economic Analysis of a Project?

The analysis of dynamic economic benefits of the project is to carry out investment outflows, operating costs, and other various capital outflows and capital inflows during the entire life of the project (including the construction period and production period), according to the time of occurrence and the established discount rate. Discounted, converted into the value at the same point in time, so that the comparison between different projects or schemes have the same basis, so as to carry out an accurate evaluation method of value judgment. Common indicators of this type of method include net present value, net present value rate, and expected return rate. ^[1]