Answer to Question #206516 in Management for KAM

Question

SUBJECT : PROJECT PLANNING AND CONTROL 

1. Explain in detail in steps with elaboration , how to conduct financial project viability study?

Answer 1

A feasibility study is part of any project's or plan's early design stage. It is carried out in order to discover objectively the strengths and weaknesses of a new enterprise or an existing firm. It may assist in identifying and assessing possibilities and hazards in the natural environment, as well as the resources needed for the project and its chances of success. it includes:

Perform preliminary research.

Prepare an income statement for the future. What are the potential revenue streams for the project?

Conduct a market research study. Is the project going to provide a marketable product or service? What is the maximum price that customers are prepared to pay for a product or service?

Plan the new project's organizational structure. What are the prerequisites for staffing? How many employees are required? What further resources are required?

Make a first-day balance of anticipated expenditure and revenue.

Examine and examine the project's internal points of vulnerability that can be regulated or removed.

Make a decision about whether or not to continue with the plan/project.