Posted in Finance, Accounting and Economics Terms, Total Reads: 357
Definition: Feasibility Study
When any project is to be implemented, we need to look at certain factors like the possible roadblocks, future prospect, and economic viability. This needs a thorough research and analysis of the plan. A feasibility study deals with this and helps in taking a decision whether to go ahead with the project or not by attempting to this particular question: Does this particular idea/project make economic sense?
Feasibility is to be looked at from different perspectives. The acronym TELOS helps us with the dimensions.
TELOS – Technical, Economic, Legal, Operational and Scheduling.
A feasibility study helps in investigating the possible positive and negative outcomes of the project and this is to be done in an irrational and unbiased manner to reap the benefits of the study. The main factors are cost incurred in the project and the value out of it. This helps the investors in taking a decision whether to go ahead with the plan or not.