Project Income is a return that you expect to gain from implementation of a project. Every project is an example of investment that is made to bring certain benefits which can be expressed in terms of objective calculations (numeric values of income they will bring to organization undertaking the project). Making a revenue projection of a project includes the following actions:
- Estimation of budget you need to accomplish the project and achieve its goals (learning costs);
- Appraisement of monetary worth of the project benefits (calculation of a project income) which can be allocated over certain time during and after the project implementation;
- Comparing projected income against the expenses to know how far the benefits cover the costs;
- Clarifying amount of time which should pass before the benefits will start generating income as expected by your plan;
By knowing approximate timeframes to obtain income, its amount and allocation over time periods you can figure out the project’s payback period that can play the critical role in justification of your project (different organizations may have different norms on return from projects).