Feasibility Studies
A study is an assessment of the practicality of a proposed project or system.
Businesses find it helpful to conduct a financial feasibility study whenever they anticipate making an important strategic decision. For example incorporation of the new company, the acquisition of another company, constructing a manufacturing plant or building, a purchase of major equipment or a new computer system, the introduction of a new product or service etc. A financial feasibility study is advisable as a means of fully studying an action in advance of taking the action. This allows managers a chance to fully assess the impact that any major changes they consider may have before implementing the change.
A financial feasibility study performed by us will determine if a particular action makes sense from financial standpoint. Such a study is usually designed to provide an overview of the essential issues related to a proposed strategic decision including its.
- Projected performance;
- Projected financial position subsequent to the decision;
- Projected cash flow position and requirement;
- Risk analysis and deterring the key factors effecting the decision;
- Estimated payback period for the proposed investment;
- Estimated rate of return.