About Financial & Evaluating Studies
Economic feasibility is a preliminary study that is performed before starting on any economic project, its primary purpose is to show the returns from this project and it is potential.
In addition, the economic feasibility study explains the required investments, the expected return from the project, and knowledge of external influences that affect the project such as competition, technical development, and laws Issued by the state.
The importance of Economic feasibility:
- The economic feasibility study is one of the best tools that managers can use to make an economic decision at the level of their own project.
- Economic feasibility helps to clarify the returns from the project compared to the throughout the life of the project.
- It helps the project management to determine the method that the administration will implement, and develops a plan or program for directly implementing the project, and linking the project elements with each other from operating, financing and marketing.
- Determine the investment return that can accrue to the project, and determine the investments that the project needs.
- Assists the investor in making the appropriate investment decision regarding the project by providing all data related to the project and carrying out its analysis.
Includes the identification of fixed assets through knowledge of the appropriate location, appropriate construction, and equipment required for the product manufacturing process, as well as identifying the inputs that represent the production requirements of raw materials, workers, and public facilities.
Read more..This study aims at the extent of compatibility of the project with the surrounding environment, by studying the following: External economic, political, social, technological, and legal factors The productive, marketing, political and social factors that exist within the project Project competitors, suppliers, and consumers.
Read more..The market study includes: Knowing the required quantity of the commodity The increase and decrease in the required quantity Conducting a study on consumers Knowing the market share of the project by making a comparison between the offered quantity and the required quantity of commodities Determining the volume of sales taking into consideration both the pricing policy, the quality of production, the methods of distribution and promotion.
Read more..This study aims to the extent of the project's compliance with the applicable laws and regulations, by studying the following: Tax laws Labor laws Market oversight instructions Environmental regulations and laws The legal entity of the project Environmental study
Read more..This study includes the calculation of total costs of the project. Foundational costs. Operating costs. Determining the amount of investment, and calculating the monthly gross profit. Setting a schedule of cash flow by determining the inflows and outflows during a specific time. Conducting financial tests to measure the feasibility of the project and all the necessary financial measures that it needs such as (BEP, PAYBACK PERIOD, ROI, IRR, NPV…etc.).
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