Asked by: Liang Jeltouhov
business and finance business operations

What is feasibility analysis of a project?

Last Updated: 27th January, 2020

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What Is the Feasibility Study? As the nameimplies, a feasibility analysis is used to determine theviability of an idea, such as ensuring a project is legallyand technically feasible as well as economicallyjustifiable. It tells us whether a project is worth theinvestment—in some cases, a project may not bedoable.

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In this manner, what is meant by feasibility analysis?

An analysis and evaluation of a proposed projectto determine if it (1) is technically feasible, (2) isfeasible within the estimated cost, and (3) will beprofitable. Feasibility studies are almost always conductedwhere large sums are at stake. Also called feasibilityanalysis.

Also Know, what is the purpose of feasibility analysis? A feasibility study examines the practicabilityof a proposal, business venture or idea. The principal function ofthis is to determine if the project will continue or not. Anotherimportant purpose is that it helps planners focus on theproject and narrow down the possibilities.

Also question is, how do you find the feasibility of a project?

Completing a Feasibility Study

  1. Step 1: Research the Business Drivers. In most cases, yourproject is being driven by a problem in the business.
  2. Step 2: Confirm the Alternative Solutions.
  3. Step 3: Determine the Feasibility.
  4. Step 4: Choose a Preferred Solution.
  5. Step 5: Reassess at a lower level.

What are the three types of feasibility?

  • Technical feasibility.
  • Legal feasibility.
  • Operational feasibility.
  • Schedule feasibility.
  • Economic feasibility.
  • Financial feasibility.
  • Managerial feasibility.
  • Political feasibility.

Related Question Answers

Siara Jinkin

Professional

What are four types of feasibility?

Chegg.com. Four types of feasibility and theiruse: Feasibility: Feasibility is the process whichmeasures development of system that how it will be beneficial forthe organization. Technical, operational, schedule and economicfeasibilities refers to tests that that are used for evaluatingfeasibility.

Nedas Winkelhofer

Professional

What is feasibility and its types?

There are many different types offeasibility studies; here is a list of some of the mostcommon: Economic Feasibility – Given the financialresources of the company, is the project something that can becompleted? The economic feasibility study is more commonlycalled the cost/benefit analysis.

Admir Doyle

Professional

What is the example of feasibility study?

Feasibility studyexample
A hospital, for example, aiming to expand, i.e.,add an extension to the building, may perform a feasibilitystudy. The study will determine whether the projectshould go ahead. The people carrying out the study will takeinto account labor and material costs.

Chieko

Explainer

What are the factors affecting feasibility study?

Factors That Affect Feasibility Study Pricing
  • Volume vs Quality. Many feasibility consultants drown theirclients in data.
  • Scope.
  • Industry and Type.
  • Complexity and Scale.
  • Constraints.
  • Market Factors.
  • Transparency and Availability of Data.
  • Options.

Yassir Tchehoev

Explainer

What are the parts of feasibility study?

What are the essential parts of the feasibilitystudies?
  • Six Essential Feasibility Study Steps. By following theaccepted feasibility study method, project managers and their teamscan reach the point of delivering their findings tostakeholders.
  • Executive Summary.
  • Clear Project Description.
  • Competitive Landscape.
  • Operating Requirements.
  • Financial Projections.

Rochell PertiƱez

Explainer

What are the different types of project feasibility factors?

The acronym TELOS refers to the five areas of feasibility -Technical, Economic, Legal, Operational and Scheduling.
  • Technical feasibility.
  • Legal feasibility.
  • Operational feasibility study.
  • Time feasibility.
  • Resource feasibility.
  • Financial feasibility.

Dominik Oliveiros

Pundit

How do you conduct a feasibility analysis?

Jennifer said to follow these steps when conducting afeasibility study:
  1. Conduct a preliminary analysis.
  2. Prepare a projected income statement.
  3. Conduct a market survey, or perform market research.
  4. Plan business organization and operations.
  5. Prepare an opening day balance sheet.
  6. Review and analyze all data.

Timika Verdelho

Pundit

What is a feasibility statement?

A feasibility report is a document that assessespotential solutions to the business problem or opportunity, anddetermines which of these are viable for furtheranalysis.

Iustina Bakhmutsky

Pundit

What are the elements of a feasibility study?

If you are planning on conducting a feasibilitystudy, you will need to include the following sixelements: 1. The project scope: The first step is to clearlydefine the business problem/opportunity that has to be addressed.The project scope has to definitive and to the point.

Wiebke Utente

Pundit

How do you prepare a feasibility report?

Steps to Writing a FSR Example
  1. Write Project Description. At this step, you need to collectbackground information on your project to write thedescription.
  2. Describe Possible Solutions.
  3. List Evaluation Criteria.
  4. Propose the Most Feasible Solution.
  5. Write Conclusion.

Liwei Schreurs

Pundit

What is process of feasibility study?

As the name implies, a feasibility study is ananalysis of the viability of an idea. Farmers and otherswith a business idea should conduct a feasibility study todetermine the viability of their idea before proceeding with thedevelopment of a business.

Flors Ewles

Teacher

What are the four areas of the feasibility analysis?

The full feasibility analysis for a for-profitenterprise typically covers four areas: Product/servicefeasibility; Industry/market feasibility;Organizational feasibility; and Financial feasibility(Barringer & Gresock, 2008).

Tsvetomira Hengst

Teacher

What defines a project?

Projects. A project is defined as aneffort to create or modify a specific product or service.Projects are temporary work efforts with a clear beginningand end. (each organization can define what they believeis a project)

Yugo Schreuer

Teacher

What is a detailed project report?

Detailed project report is a complete documentfor investment decision-making, approval, planning. Detailedproject report is base document for planning the projectand implementing the project. DPR for General EducationDepartment 1.67 mb.

Izar Weinold

Teacher

What is viability of a project?

A project is not typically consideredviable if its value exceeds its costs. Sometimes the costviability of a project can change over the course ofthe project's development or implementation.

Aleena Hauptmeyer

Reviewer

What is economic feasibility of a project?

The purpose of an economic feasibility study(EFS) is to demonstrate the net benefit of a proposedproject for accepting or disbursing electronicfunds/benefits, taking into consideration the benefits and costs tothe agency, other state agencies, and the general public as awhole. Cost Benefit Analysis.

Yovanna Cords

Reviewer

What does a feasibility study consist of?

A Feasibility Study is a formal project documentthat shows results of the analysis, research and evaluationof a proposed project and determines if this project is technicallyfeasible, cost-effective and profitable.

Krasimira Pareta

Reviewer

What is the main purpose of a feasibility study?

The Purpose of a Project FeasibilityStudy. The purpose behind a project feasibilitystudy is to know the different variables involved with yourbusiness venture and how it will be accepted on the open marketalong with who will be the target audience.

Casiano Holzenthal

Reviewer

What is the most important part of feasibility study?

What is the most critical part inpreparing a feasibility study? I mean which part thatdetermine is the feasibility study is well prepared or no,e.g.,new product market study, Risk factors, FinancialIndicators,etc.