Feasibility Study

Feasibility Study

      A feasibility study is a technical paper for program management and administration to determine the investment viability of the project. There are two kinds of feasibility study, those projects that are: (1)revenue generating project which is utilize for the establishment of business firm such as market, malls hospital, and other business entities (commerce and trade) that need financial assistance in the commercial banks as part of the equity and amortization of loans operation including development program that produce revenue of a given project; and (2) non-revenue generating projectutilizes financial grants ,assistance and subsidies by the international funding institutions, government agencies, non-government organizations and other philanthropic associations which is more on social responsibility to uplift the life of the poor people.

A. Revenue Generating Projects

      The feasibility study usually connotes the Return-Of-Investment (ROI) or profitability which is financially viable for the investment in the production of goods and services. It also needs to assess the cost and benefit through the return of investment in a given period of year. It has to support financial profitability indicators and varied financial statements of the project. The establishment of the business firm primarily needs feasibility study to assess the financial profitability; market shares; economic benefits; organizational and management support; and environmental scanning on the entire operation of the business. The financial assistance for the equity shares of revenue generating projects is thoroughly studied along the financial aspects. The financial profitability indicators such as financial fluidity; income flow statement; assets and liabilities; net present value, internal rate of return, cost-benefit analysis are included in the submitted technical financial paper of the business project.

B. Non-Revenue Generating Projects

       The...