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FEASIBILITY

A project feasibility study is a systematic analysis of the key factors that could affect the success of a proposed project. It examines market, technical, financial, socio-economic, and management considerations. The study's findings are used to determine whether a project should be approved, rejected, or modified. It aims to enhance the likelihood of a project's success by carefully planning the activity, rather than proceeding without a plan. A feasibility study undergoes a critical "go/no-go" review phase that decides the project's viability and profitability across legal, economic, technological, and other dimensions.

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61 views

FEASIBILITY

A project feasibility study is a systematic analysis of the key factors that could affect the success of a proposed project. It examines market, technical, financial, socio-economic, and management considerations. The study's findings are used to determine whether a project should be approved, rejected, or modified. It aims to enhance the likelihood of a project's success by carefully planning the activity, rather than proceeding without a plan. A feasibility study undergoes a critical "go/no-go" review phase that decides the project's viability and profitability across legal, economic, technological, and other dimensions.

Uploaded by

Evelyn Sateniaman
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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THE ROLE OF THE PROJECT FEASIBILITY STUDY

The role which project feasibility studies play in the


development of nations cannot be over emphasized. With
repercussions on the social, economic, cultural, and
business sectors of society, a project feasibility study is an
essential medium of progress both as a means to initiate
profitable projects for sectoral enhancement and
expansion and to evaluate actual project results.

The project feasibility study is a thorough and


systematic analysis of all factors that affect the possibility
of success of a proposed undertaking. The data, facts,
and other findings presented in the study then become the
basis for deciding whether the project is to be pursued,
abandoned, or revised. The project feasibility study is
really a synthesis of separate studies usually dealing with
the market, technical, financial, socio-economic, and
management aspects of the project. The project feasibility
study, does not claim to be an antidote to failure. Its
primary purpose is to enhance the probability of success
of a specific undertaking. It is a result of the belief that are
carefully planned activity with a better chance to succeed
than an activity without a previous plan. The project
feasibility study is one of the best instruments to meet the
challenges of constant change.

Feasibility project experiences the “go” or “no-go” phase


of its existence.
Cabrera (2000) defines a project feasibility study as “ a
systematic investigation which ascertains whether a
business undertaking is viable and if so, the degree of its
profitability.”

project feasibility study is an analysis of the ability to


complete a project successfully, taking into account the
legal, economic, technological, scheduling, and other
factors.

Wikipedia defines it as “an evaluation and analysis of


the potential of the proposed project which is based on
extensive investigation and research to support the
process of decision making.” )

, the term project feasibility is defined here as a systematic


inquiry into a proposed business activity to determine its
viability in all areas directed towards the measurement of
profitability level. This working definition is applied in the
different sections of this text and in all discussions within
the peripheral concept of this operational definition.
NATURE OF FEASIBILITY STUDY

Based on the given definition, the key terms to


remember are

Systematic inquiry
systematic in this context implies two things.

First, that there is a procedure or a step-by-step process


involved in the conduct of a feasibility study.

Second, systematic means that the whole study is


composed of different phases or aspects.

Proposed business activity

A project feasibility study applies only to a business


endeavor. A business is an organization engaged in lawful
commercial activities of selling products or services for
monetary consideration with the intention of realizing
profit.

Characteristic to qualify as a business activity:

 It should be intended for profit,


 It must be regularly undertaken,
 It must be financial in character.
profit refers to the accounting definition which means the excess of all costs and expenses over
revenue.

A business activity involves an exchange of monetary values with another party.

Viability in all area

the viability of a business endeavor, not only in one but in all aspects.
Viability in all areas ensures a higher chance of attracting and convincing prospective investor.

Measurement of profitability level.

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