Cost-benefit analysis at marinas: An application on marina located at the Aegean coast

In order for the limited (scarce) resources to be utilized in the most proper fields and in the best possible manner that would provide both the related business and the overall state economy with the highest possible profits and / or benefits, any new investments would definitely necessitate a thoroughly thought over project study. The idea behind any cost-benefit evaluation is to determine the feasibility and practicability of the relevant investment project and, in case there could be diverse alternatives, to seek and put forward the basic criteria to be considered while deciding on the most appropriate choice of one of the emerged alternatives. In deciding on the relatively beneficial investment projects, two discrete methods have recently been in use: the dynamic method, which considers and the static method which does not, the time value of money.Cost-Benefit Analysis; which could be used for all types of state-owned projects though, is a project evaluation technique to be used for state investment projects and certain private investment projects that want to be granted state incentives. In this concept, as marinas are established through Build-Operate-Transfer (BOT) model by means of being provided with certain state incentives, the feasibility of such marina projects is scrutinized through cost-benefit analysis.The purpose of this study is to thoroughly discuss the methods used in investment project evaluations, review the use of sensitivity analysis as a risk determining technique and apply this technique on a marina investment project. The overall findings of the analysis carried out have revealed with the rational values that the project studied is feasible.