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What is Financial Feasibility

Retrofitting for Optimal Energy Performance
The capacity of a project to generate cash incomes superior to the payments needed
Published in Chapter:
Financial Considerations in Green Retrofitting for Optimal Energy Performance
Andreea Curmei-Semenescu (The Bucharest University of Economic Studies, Romania) and Cătălin Valeriu Curmei (The Bucharest University of Economic Studies, Romania)
Copyright: © 2019 |Pages: 22
DOI: 10.4018/978-1-5225-9104-7.ch002
Abstract
This chapter focuses on how to correctly assess the financial feasibility of a retrofitting project using different indicators and methods. It also emphasizes the advantages and limits of each method offering the reader the ability to choose the most appropriate method(s) for each retrofitting project. In its last part, the chapter explains how the financial feasibility can be integrated in a broader set of criteria considered for retrofitting the capital budgeting decision-making process. The chapter also includes examples of computing the financial indicators for green retrofitting evaluation. It thus provides the readers with the opportunity to understand how the capital budgeting evaluation methods can be used in practice and correctly interpret their results.
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