Evaluation of Business Project Efficiency: Theory and Practice of Implementation

The purpose of this study is to monitor various available methods for evaluating the efficiency of economic business projects, to determine their advantages and disadvantages, as well as to develop a number of recommendations for improving these methods. The objectives of the research are: to analyze the existing methods for evaluating the efficiency of economic projects; determination of the advantages and disadvantages of each of the methods; development of recommendations for improving the practice of evaluating the efficiency of economic projects. The article discusses the theoretical and practical aspects of evaluating the efficiency of business projects. The authors emphasize that the evaluation of efficiency of the project is an important stage in its development and implementation, as it allows you to determine the feasibility of its implementation and make optimal decisions on its financing and the functioning of the business as a whole. The practical aspects of evaluating the efficiency of economic projects are analyzed in detail. Efficiency evaluation is an important stage in the project life cycle, which involves a detailed consideration of the financial, economic and social aspects of its implementation. The authors also highlight the methods and tools that are used to conduct the evaluation, describe in detail the financial models that allow calculating efficiency indicators, such as NPV (net present value), IRR (internal rate of return) and some others. In the context of making informed decisions on the implementation of the project, it is emphasized that practical efficiency evaluation is becoming a key tool for management and investors. It provides specific numerical data and analytical information that serves as the basis for deciding whether to proceed with a project. In general, the evaluation of the efficiency of economic projects is an important tool for decision-making on the implementation of projects. Under martial law, this evaluation becomes even more relevant, as it is necessary to ensure the efficient use of limited resources and the compliance of projects with the needs of the population. To improve the practice of evaluating the efficiency of economic projects, it is necessary to develop new evaluation methods that take into account the time value of money, the ability to compare projects with different capital intensity and ease of use in practice. We believe that the implementation of the recommendations presented in the article will improve the quality of evaluating the efficiency of economic projects in Ukraine and will contribute to the effective use of limited resources for the country’s recovery.