FEASIBILITY STUDY

Enumeration (9pts)
Costs are significantly more difficult to quantify, at least in a
timely and inexpensive manner. The minimum costs that must
be determined are those that specifically are used for
comparison to the benefits. These include? (2pts)
-The current operating cost or the cost of operating in
todays circumstances
-future period costs that are expected and can be planned
for
Give 2 examples each for tangible and intangible benefits.
(4pts)
Tangible
-Fewer processing errors
-increased throughput
-decreased response time
-elimination of job steps
-increase sales
-reduced credits losses
-reduced expenses
Intangible
-Improved customer goodwill
-improved employee morale
-better service to community
-better decision-making
Give at least three reasons why to conduct a feasibility study.
(3pts)
1. Gives focus to the project
2. Narrows business alternatives
3. Identifies new opportunities through the
investigative process.
4. Identifies reasons not to proceed.
5. Enhances the probability of success by addressing
and mitigating factors early on that could affect
the project.
6. Provides quality information for decision making.
7. Provides documentation that the business venture
was thoroughly investigated.
8. Helps in securing funding from lending
institutions and other monetary sources.
9. Helps to attract equity investment
Identification and True/False (21pts)
1. Deals with the compatibility of the proposed project with
the cultural environment of the project. In labor-intensive
projects, planned functions must be integrated with the
local cultural practices and beliefs. Cultural Feasibility
2. Requires an evaluation of the compatibility of project
goals with the prevailing goals of the political system.
Political Feasibility
3. Analysis to view the potential impacts of market demand,
competitive activities, and market share available. Market
Feasibility

4.

Refers to an analysis of whether the project is capable of

being implemented and operated safely with minimal
adverse effects on the environment. Safety Feasibility
5. Addresses the influences that a proposed project may have
on the social system in the project environment. Social
Feasibility
6. Aspect worthy of real attention in the very early stages of
a project. Concern must be shown and action must be
taken to address any and all environmental concerns
raised or anticipated. This component also addresses the
ability of the project to timely obtain and at a reasonable
cost, needed permits, licenses and approvals.
Environmental Feasibility
7. The amount of money being transferred in and out of a
business. Hint: Involves in the Financial Analysis. Cash
Flow/ Cash Flow Profile
8. Description of the technical aspects of the business idea.
Engineering and Design
9. Technique used to determine how different values of an
independent variable will impact a particular dependent
variable under a given set of assumptions. Sensitivity
Analysis
10. This is a critical analysis since it determines whether or
not and when funds will be available to the project.
Financial Analysis
11. Provides an assessment of the impact of the proposed
project. Project Impact
12. Environmental, Social, Cultural, Economic, and
______________ impacts may be some of the factors
that will determine how a project is perceived by the
public. Political
13. A feasibility that involves the capability of the project
organization to raise the appropriate funds needed to
implement the proposed project. Financial Feasibility
14. True or False. Financial Feasibility is the same as
Economical Feasibility. False
15. It is a feasibility that measures on how reasonable the
project timetable is. Schedule Feasibility
16. This area reviews the structural, civil, and other relevant
engineering aspects necessitated by the project design.
Technical Feasibility
17. To ascertain managerial feasibility, the key elements
required are demonstrated management capability and
availability, employee involvement, and ___________.
Commitment
18. The process of identifying the financial benefits and
costs associated with a development project.
Economical Feasibility
19. What does the word feasible means? possible to do
20. True or False. Conducting a feasibility study identifies
reasons to proceed with the project. - True
21. True o False. Feasibility study do not attract investment False