What Is Involved in the Financial Analysis of Projects?

Project financial analysis is also called "financial benefit analysis" or "enterprise economic analysis". That is, in the project evaluation, based on various financial statements prepared by financial forecasts, various methods are used to analyze the financial benefits of the project. The main purpose of financial analysis is to determine the profitability of the project, such as the amount of income, the rate of return, the rate of return on investment, and the ability to repay debts, in order to determine whether the project is financially feasible. The basic goal of benefit financial analysis is to assess whether a project is financially feasible. ^[1]