Feasibilty Studies

Economic feasibility studies for projects is one of the very significant and influential factors when choosing a new investment project, as the main objective of the feasibility study is to investigate the possibility of establishing such project, achieving the maximum possible return from the available resources and gaining profits that exceed the cost invested in it, and to reach a final decision to accept or reject the idea.

Phases of economic feasibility study for projects:

1- Market Study
• How valuable is the project for the market
• To determine the target sections.
• To determine the competitors.
• To evaluate how the market is needy for the studied product.
• To study product supply and demand.
• To offer a mini-study of the marketing methods to be used for the product and to suggest the most appropriate marketing methods to reach targeted sales.

2- Technical Study
• To study and select the project site.
• To plan for the production process and milestones.
• To select and describe the production equipment.
• To determine the operational cycle.
• To study the variable and nonvariable costs.
• To estimate the investing costs required for the project.

3- Financial Study
• To study the suggested revenues and selling prices.
• To prepare the project future statements of income and cash flow

4- Financial and Economic Indicators:
• Analysis of profitability, liquidity and repayment period of capital

5- Project Evaluation:
• General recommendations on the project, from economic-social perspective.