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Feasibility report

• A feasibility report is the results of a feasibility study This report details whether or not a project should bundertaken and the reasons for that decision.

• Report Content

1. Introduction/Executie !u""ary

#. $ack%round

&. outline of project

'. (ethodolo%y/"ethod of analysis

). *eriew of alternaties

+. Conclusion

,. Reco""endation

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Introduction/Executive summa

1. It state objectie of the report and of the project

#. It should refer ter"s of references

&. Also it should state the constraints within which it hbeen conducted

'. Executie su""ary-

 This should concise su""ary of the "ajorreco""endations of the report within + pa%es sthat it uickly understood by senior executie

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Background

 

• !o"e feasibility reports "ay reuire so"eback%round discussion in order to "ake the rest the report "eanin%ful to readers.

 

• 0escribe your proposed plan in sucient detail s

if it worked elsewhere and how it was i"ple"ent

• Background on the Situation. 2or "any feasibreports3 you4ll need to discuss the proble"3 needopportunity that has brou%ht about this report.

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Outline of system

• *utline of syste" inoles description of project

• 5ist type and uality of product6s7 or serice6s7 to be"arketed.

•  *utline the %eneral business "odel 6ie. how thebusiness will "ake "oney7.

•  Include the technical processes3 si8e3 location3 and of inputs.

•  !pecify the ti"e hori8on fro" the ti"e the project iinitiated until it is up and runnin% at capacity.

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Methodology

• It inoles discussion on "ethod of analysis for

feasibility study

• eturn on Investment !OI" analysis

  For comparing overall pro#tability

  OI $ Estimated lifetime bene#ts % Estimalifetime costs

  Estimated lifetime cos

or

OI $ &et 'resent value / Estimated lifetime c

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 !TRE9:T;! <EA=9E!!

M(I&)(I&I&* )+ESES)E*)+S

<hat can do for "aintain thesestren%ths>

O,E-OMI&* )+ESE.E(&ESS

<hat should I do to oerco"ethese weakness>

O''O)0&I)IES )+E()S

)(I&* (1,(&)(*E OF )+ESEO''O)0&I)IES

<hat can I do to take theadanta%e of theseopportunities>

O,E-OMI&* )+E()S

<hat can i do to oerco"e thethreats>

S.O) (nalysis 2%

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Overvie3 of alternatives

• ?ossible alternaties

• @!tickin% with the current syste" should alwaysstudied as one alternatie

• 0iBerent business processes for solin% the prob

• 0iBerent leels/types of co"puteri8ation for thesolutions

• Adanta%es and disadanta%es of the alternaties

•  The "ajor possible alternaties should be discussedco"pared usin% clearly dened criteria.

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 1. Estimate E4uity and -redit &eeds

•  Identify alternatie euity sources and capital aaila

 ?roducers3 5ocal Inestors3 An%el Inestors3 DentuCapitalists

•  Identify and assess alternatie credit sources.

 $anks3 :oern"ent 6direct loans or loan %uarante:rants3

  5ocal and !tate Econo"ic 0eelop"ent Incenti

•  Assess expected nancin% needs and alternatie sou

  Interest Rates3 Ter"s3 Conditions3 Etc.

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#5 -ost and bene#ts evaluatio

• It de"onstrate how this proposal is feasible

• It inoles discussion technolo%ical feasibility3 econo"ic practicasocial desirability3 and ecolo%ical soundness

• Exa"ples of benets

1. cost reductions

#. error reductions

&. increased throu%hput

'. increased exibility of operation

). i"proed operation

+. better 6e.%.3 "ore accurate7 and "ore ti"ely infor"ation.

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• Types of costs

0eelop"ent costs purchasin% cost3 Installation co

operational cost

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-onclusion

•  The conclusions section of a feasibility is the

restate"ent of the conclusions you hae alreadyreached in the co"parison sections. In this section3 restate the indiidual conclusions3 for exa"ple3 whic"odel had the best price3 which had the best batterfunction3 and so on.

• It "ust untan%le all the conictin% conclusions andso"ehow reach the nal conclusion3 which is the onthat states which is the best choice

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ecommendation

•  The nal section of feasibility reports states the

reco""endation.

•  The reco""endation section should echo the "osti"portant conclusions leadin% to the reco""endatiand then state the reco""endation e"phatically.

• the basis for that jud%"ent has to be stated so"ewin the reuire"ents section.