Feasibility studies

It is the process of gathering information about a proposed project and then analyzing it to see the feasibility of its implementation, and to reduce the risks and profitability of the project.
Therefore, it is necessary to know the extent of the success of this project or its loss compared to the local market and its needs, and then expect the companies’ ability to remain as a profitable business company during a specific period of time.
Good preparation for economic feasibility is one of the most important steps in the success of projects. The success and effectiveness of projects depend in the first place on proper planning, and careful planning is the main pillar on which the expected financial return depends on the project. Hence the need for what is known as economic feasibility.

Feasibility Study Services

Contents of the feasibility study

* Marketing feasibility study
Description of the commodity market that the project will produce.
Study the demand for the commodity that the project will produce.
Pricing the commodity that the project will produce.
Sales forecasting.

* Technical feasibility study
Determine the size of the project.
– Choose the project site
– Determine the costs of establishing and establishing the project
– Determine the timetable for implementation of the project
Determine the age of the project
Deciding whether the feasibility study is to be completed or discontinued

* Financial feasibility study
Estimating investment costs
Estimating running costs
– Evaluate the sources of investment financing
What is the financial value of one unit of the total obtained?
Estimating the net present value
Estimating the ratio between benefits and costs
Estimating the internal rate of return
– Estimate the emergency reserve

* Economic feasibility study
– Measuring the economic return of the project for the country where the activity is located
– Estimating the value of shadow prices that reflect the real economic value of the modified values, whether they are for cost or revenue components

* Social feasibility study
– The impact of the project on creating new job opportunities, how many jobs will the project require, and how much regular employment is there
– The impact of the project on income distribution in favor of low-income social groups
– If the product of this project is to serve low-income social groups

* Environmental feasibility study
Determine the environmental issues that will be caused by the project and estimate their actual cost
– To suggest mechanisms to reduce damages arising from the implementation of the project
– The environmental impact assessment of the project helps in selecting alternative sites in case the environmental impact of preserving the environment increases

* Sensitivity analysis for projects
– The project’s sensitivity to increasing costs
– The sensitivity of the project to delaying the implementation period
– The sensitivity of the project to the low prices of the project product
The project’s sensitivity to low production