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.
It is a through 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 became the basis for deciding whether the project is to be pursued, abandoned or revised. It is really a synthesis of separate studies usually dealing with the market, technical, financial, socio-economic, and management aspects of the projects. The project summary presents the highlights, descriptive definition, long range objectives, feasibility criteria, history and basic conclusion at the project under study. It gives the analyst and the financier a “capsule view” of the whole project.
Normally, this portion contains the name of the firm, and the location and size of its head office, plant size and factory. It also presents a comprehensive description of the business and its operation and briefly defines the product line of the business. Major finding in the market, technical, financial, socio-economic and management feasibility of the project are discussed under this section. The status and timetable of the project must also be started.