07-09-2017, 12:01 PM
The feasibility study is an assessment of the feasibility of a proposed project or system. A feasibility study aims to objectively and rationally disclose the strengths and weaknesses of an existing business or a proposed business, opportunities and threats present in the natural environment, the resources needed to carry out and, ultimately, the prospects for success . In its simplest terms, the two criteria for judging viability are the required cost and the value to be achieved.
A well-designed feasibility study should provide a historical background to the company or project, a description of the product or service, financial statements, details of operations and management, marketing research and policies, financial data, legal requirements and tax obligations. In general, feasibility studies precede technical development and project implementation.
A feasibility study assesses the project's potential for success; therefore, perceived objectivity is an important factor in the credibility of the study for potential investors and credit institutions. It should therefore be carried out with an objective and impartial approach to provide information on which decisions can be based.
