Evaluating projects in Turkey is an important step before starting your investment experience in Turkey, as you learn about the expected profits from an economic point of view, in addition to making sure that the project’s outputs will exceed its total inputs and costs.
In this article, we review the criteria for evaluating investment projects, in addition to identifying the stages and methods of evaluation.
Steps of Evaluating Investment Projects in Turkey
Project evaluation goes through several successive stages, which are as follows:
1) The stage of preparing and formulating the initial project idea.
2) The stage of evaluating investment projects, which includes the following stages:
1- Defining the principles and foundations of the project evaluation process.
2- Conducting economic, preliminary and technical feasibility studies.
3- Making detailed economic and technical feasibility studies.
4- Conducting an evaluation of the feasibility studies.
5- Choosing the appropriate evaluation criteria during the project life cycle.
Methods for Evaluating Project Costs and Benefits
Investment projects are subject to many methods of evaluating the costs and benefits of the project, and in the following points we review the most commonly used evaluation methods:
1) net present value.
2) Payback period.
3) Profitability indicator.
4) internal rate of return.
5) Accounting rate of return.
Criteria for Evaluating Investment Launched Projects
1) Continuous review of activities to help assure quality, taking into account the standards within the project contract, especially those related to safety and security issues, licenses, in addition to environmental considerations and legal requirements.
2) Periodic examinations of the extent to which the implemented works have achieved the objectives of the project, and this process is conducted monthly, weekly or daily, according to the requirements of the investment project.
3) Evaluation of important events in the project, such as the evaluation of the completion of one of the main stages of the project, as it is a formal approval of the completion of work according to the plan followed.
4) final project audit; To ensure that tasks are completed according to the approval of the clients, the consumer, and the project team.
Accordingly, it becomes clear to us the importance of the project evaluation stage in overcoming the risks that may face the investment, while creating a level of safety for the invested funds.
Finally. If you want to know more information about evaluating investment projects in Turkey, or if you want to do a feasibility study for your project, or even get an idea for an investment project with profitable returns, contact us at Trustus, and get a special consultation from a professional team in legal and accounting consultancy.
Edited by: Trustus Consulting©
