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Pointers in Evaluating A project Feasibility Study

A. Market Study

The market study answers two basic questions:


1. Is there a demand for the product?
2. If so, can the marketing program effectively meet this demand?

B. Technical Study

There are three basic issues to be considered in the technical section:


1. Product quality
2. Resource Availability and Accessibility
3. Optimal use of resources to produce the highest possible quality at the
lowest possible cost

C. Financial Study

The financial study requires the preparation of a number of financial


statements and the analysis of several benchmarks in the form of ratios culled
from the financial statements. As such, the entire study practically boils down
to a question of profitability.

D. Socio-Economic Study

The evaluation of this portion of the project study is a matter of determining


whether society and the economy derive net positive gains from the project.

E. Organization and Management

Two major questions may be posed in evaluating organization and


management aspects of the project study:
1. Is the organization setup optimally effective?
2. Are the recommended key officials the best qualified under the
circumstances?

Optimum effectiveness refers to the ability of the organizational setup to


carry out its functions smoothly while having the lowest number of personnel
possible.