PROJECT FEASIBILITY STUDIES
Project feasibility studies are intended to
determine the practicability of investment projects as well as to
define their main elements.
A project feasibility study consists of four
Is there a market for our product? What is our
profits projection? On what do we base that projection?
Definition of the product, market extent and
tendencies, market penetrability, commercial strategy, and potential
How is the product to be manufactured or the
service to be granted? How much is to be invested?
Determination of the technical features of the
product, plant location, suitable technologies, machinery and
equipment, goods and services needed to manufacture the product, raw
materials, labor force, and investment schedule.
How are the enterprise and the project to be
Definition of the promoter of the project, his/her
business experience, organizational structure, legal aspects, and
Is the project financially feasible? How is the
financing to be structured?
Amount to be invested, credit and capital
structure, profit projections, costs and results, pro-forma
balances, cash flow.