WHAT IS A FEASIBILITY STUDY? 

A feasibility study is a tool that is used to guide the decision to continue or abandon a project and is already applied in the pre-operative part of the cycle.Through a feasibility study it can be determined:
--
The size of the market, the location of the facilities and the selection of technology. 

--The design of the appropriate administrative model for each stage of the project.
--The necessary investments and their chronology. 

--The sources of financing and the regulation of commitments to participate in the project.
--The terms of contracting and bidding documents for works for the acquisition of equipment and main and complementary civil constructions.
--Submission of the project to the planning and environmental authorities.
--Application of evaluation criteria, financial, economic, social and environmental.


With all these variables you can determine if you can continue or you have to abandon the project because you do not find it sufficiently viable, convenient or timely or in any case improve it.


What does the feasibility study of a project mean?

The feasibility study of a project is a tool that is used to guide decision making in the evaluation of a project, this tool is used in the last pre-operational phase of project formulation and serves to identify the possibilities of success or failure of an investment project, in this way it will be possible to decide whether or not to proceed with the implementation.

 

Research carried out by: Academic Writing Service

 

The feasibility study should lead to:

--Carry out a market study that will help determine the size of the project, the location of this and what technology should be used.
--Determine and design the appropriate administrative model to process each phase of the project.
--Make a calculation of the investment that will be necessary for operating costs and have an estimate of income.
--Identify the sources of financing and the level of participation in the project.
--Define what will be the terms of contracting and bidding processes to acquire equipment and if it is necessary to carry out civil constructions.
--If it becomes necessary, make the project available to the planning and environmental authorities.
--Determine the realization of the project through a financial analysis including economic, social and environmental.



With the feasibility study we can know if it will be feasible to carry out the project; Or, with the study, analysts and specialists will be able to make recommendations to consider in order improving their design.

The main objectives of the feasibility study are:
--Corroborate that there is a potential market to cover an unmet need.
--Determine the feasibility and availability of human, material, administrative and financial resources.
--Demonstration of technical feasibility and availability of human, material, administrative and financial resources.
--Be very clear about the benefits in financial, economic, social and environmental matters, in this way you can designate resources for the production of a good or the provision of a service.