Feasibility study is a report on the feasibility of a project from different aspects of the market, which provides technical and financial studies. The purpose of the feasibility study is to determine the feasibility and possibility of the implementation of a project.
In the face of investment opportunities, a lot of investors interested in investment may continue to be optimistic by just focusing on the benefits or advantages. Feasibility studies and feasibility reports, in particular with the use of outside counsel or the investor (third party) provides the opportunity to know all the pros and cons of the project or the investment. In other words, all the factors affecting the project were carefully examined, the strengths and weaknesses of it reviewed and the feasibility investments are estimated. Generally, a feasibility report consists of three parts as follows:
1. The market study:
Market aspects of the product (s) including supply, demand, shortage, target market, etc. studied.
2. Technical feasibility:
Technical aspects of the plan, including technology, capacity, location, operation, equipment manufacturing and project structure examined.
3. Financial Analysis:
Various aspects of financial and project profitability analysis.