Feasibility study

The objective of the feasibility study is to identify and identify alternative opportunities available for investment. And creating effective methods and patterns for evaluating and developing projects in all aspects of projects, in terms of technology, technical, financial, economic and marketing aspects. And the possibility of providing expansion plans and programs and knowing the economic implications of that, and choosing the best possible alternatives available from the idea before investing a sum of money in it. Providing quality information to decision makers.
Therefore, preparing a feasibility study is a crucial step in the initial stages of any new project, as it must be conducted before starting any investment and allocating funds and resources.

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The importance of the economic feasibility study

The effectiveness and success of any project is related to determining the economic, financial, administrative and technical variables that affect the investment decision in terms of determining the investment opportunity associated with the investment project in light of the relationship between the cash outflows as a capital investment cost and the cash inflows as a successive return (income) that is expected to be achieved in the future and the time dimension of the investment that It represents the economic useful life of the project and the discount rate that reflects the cost of capital and the uncertainty risks associated with the project as an investment opportunity.

Estimate the size of the request

On the project’s products and analysis of its financing sources with continuous control over costs during the project implementation stages and work to avoid project failure by providing the financial, human, material and technical requirements for each stage of implementation and evaluating the implementation stages to avoid delay in the implementation of any stage beyond the schedule set for implementation as well as the objective study of the risks of non-implementation Ensure to limit its negative effects on the value of the economic and social return expected to be achieved, given the connection of these risks to the future and the difficulty of avoiding them.

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Analysis and identification of economic and financial variables

It requires analysis and identification of the economic, financial, administrative and technical variables affecting the profitability of the project by tabulating and tabulating the project data in integrated tables that reflect the economic, technical, marketing, financial and human value of the project, which helps in writing various reports that cover all aspects and requirements of the economic feasibility study.
Thus, we see that the investor, according to the results of the economic feasibility study, makes a comparison between the alternative projects in order to choose the best one from the investment point of view. Also, the private investor aims to achieve the expected profits from these projects and obtain the best return for his invested money. Maintain and guarantee Continuing to deal with banks and other various sources of financing on his financial needs, whether for this project or for others, and the investor aims, behind conducting a feasibility study for the project, to obtain the approval of the official authorities to establish the project.

The importance of feasibility studies for the public investor

The state needs a method for selecting the projects that have the greatest public benefit, and this only comes through a feasibility study on the basis of which public projects can be arranged according to the degree of need for them.
Project relationship with other projects.
The state does not grant a license to establish a project unless it is assured that the social burdens resulting from that project are the least possible and that the social returns and benefits that the project brings to society are the greatest possible.

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