MaryJeanMenintigar 8/7/2008 |
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A Feasibility Study is an exercise which is undertaken to decide whether or not a project should be done. There is no point in rushing into something and three quarters of the way through the project realize that it can't be done. That is a waste of time and money. Rather plan in the beginning and work out all possible scenarios so that not only the project is completed but it is completed in the most efficient and cost-effective possible way. There are four main types of feasibility which needs to be analyzed when conducting a feasibility study. They are technical feasibility, economic feasibility, schedule feasibility and operational feasibility. Technical feasibility looks at whether or not the project can be completed. Economic feasibility looks at how much it will cost. Schedule feasibility is how long it will take and operational feasibility sort of sums the first three up and works out whether or not the project should go ahead. When it comes to the economic feasibility that is a bit more complicated as there is more than one way to calculate this. Some use net present value while others use return on investment. What discount rate you use is also a critical factor in calculating this. ... more>>