European funds represent financial assistance from the European Union to certain policies of member states towards certain areas. Many projects are financed from EU funds, and in order to justify investments in a particular project, it is necessary to make a cost-benefit analysis of the project. Cost-benefit analysis (CBA) is an analytical method that allows the assessment of the feasibility of investment for the project holder and society based on the expected financial and economic effects during construction and project life. The cost-benefit analysis takes human, technological and natural resources used in the projects into account in order to make the right investment decisions. With the help of indicators, the CBA seeks to prove the financial viability and cost-effectiveness, as well as the economic benefits of the project. The development of the CBA is based on the following principles: opportunity cost, reference period, discounting method, value monetization, microeconomic approach and incremental approach. In order for the analysis to be carried out as well as possible, it is necessary to follow the recommended steps: content description (environment analysis / context presentation), goal definition, project identification / determination, technical feasibility and sustainable development (project feasibility with demand and options analysis), financial analysis, economic analysis and risk assessment. In Zadar, the already existing business incubator achieves exceptional business results, and records a constant maximum capacity utilization for years. Consequently, there is a need to build new capacity, and through CBA analysis seeks to prove the justification of investing in the venture.