A PREFEASIBILITY STUDY
A FEASIBILITY STUDY
MARKET ANALYSIS
TECHNICAL ANALYSIS
FINANCIAL ANALYSIS
ECONOMIC ANALYSIS
ECOLOGICAL ANALYSIS
LEGAL AND ADMINISTRATIVE
Market research is the means by which those who provide goods and
services keep themselves in touch with the needs and wants of those
who buy these goods and services.
FIELD RESEARCH
• Personal interview
• Telephone interview
• Postal surveys
• Purchase survey
The “cost of project” represents the total of all items of outlay associated with a project which are
supported by long-term funds. The major cost elements of a project are the following:
Land and site development
Buildings and civil works
Plant and machinery
Technical know-how and engineering fees
Fixed assets
Preliminary and capital issue expenses
Margin money for working capital
Initial cash losses
REJVI AHMED, Feasibility Study, Pentagon, Dept. of Mechanical
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Engineering. IUBAT
MEANS OF FINANCING
Means by which a budget deficit is financed or a surplus is used. Means of financing are not included in the budget
totals. The primary means of financing is borrowing from the public. In general, the cumulative amount borrowed
from the public (debt held by the public) will increase if there is a deficit and decrease if there is a surplus, although
other factors can affect the amount that the government must borrow. Those factors, known as other means of
financing, include reductions (or increases) in the government's cash balances, changes in outstanding checks,
changes in accrued interest costs included in the budget but not yet paid, and cash flows reflected in credit
financing accounts.
To meet the cost of project the following means of finance are available:
Share capital
Term loans
Debenture capital
Deferred credit
Incentive sources
Miscellaneous sources REJVI AHMED, Feasibility Study, Pentagon, Dept. of Mechanical
Engineering. IUBAT
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PROJECT PROFITABILITY
Where,
Contribution = Selling cost – Variable cost
Fixed Cost = Contribution - profit
• To ensure that the project is technically feasible in the sense that all the
• It includes study concerning contracts, liability, violations, and legal other traps
frequently unknown to the technical staff
• e.g. a data processing system must comply with the local Data Protection Acts.
• Antitrust laws
• Safety regulation
• Union contracts