Project Feasibility Study

Dean JEFFREY P. FRANCO, CPA, MBA

Instructor
What is a Project Feasibility Study?
A project feasibility study is a preliminary study undertaken
to determine and to document a projects viability. The
result of this study are used to make a decision whether to
proceed with the project or not. Although it does not
guarantee financial success, it attempts to reduce the risk of
the investment, thereby reducing the waste of valuable
resources.
A project feasibility study is a systematic inquiry to
determine whether a specific business undertaking could be
implemented (if viable) at a certain acceptable profit level
(or degree). It is also a plan or a framework on how the
operation of a business project shall be accomplished.
What is a Project Feasibility Study?
Another meaning
Project Feasibility Study is an analysis of possible
alternative solutions to a problem and a recommendation
on the alternative.
But PFS should not be
too voluminous and filled with too
theoretical proposals. They must be real
and practical.
First Step: Needs Analysis
Basic Questions Is there a need for the
project? What are the reasons why the study
was carried out?

Parts of a Project Feasibility Study
The PRELIMINARY SECTION
Title Page (with standard format)
Approval Sheet (with standard format)
Preface
Acknowledgements
Table of Contents
List of Tables (if any)
List of Figures (if any)
List of Annexes (if any)
Parts of a Project Feasibility Study
The MAIN BODY of the REPORT
The Executive Summary
Project Background and History
Marketing Feasibility
Technical Feasibility
Management Feasibility
The MAIN BODY of the REPORT
Financial Feasibility
Socio-economic Feasibility
Findings, Conclusions and
Recommendations
Project Implementation and
Timetable
Parts of a Project Feasibility Study
The REFERENCE SECTION
Bibliography
Appendix
Index (if any)
The Executive Summary
Highlights (Project Background, Reasons Why the Study is Carried Out,
Summary of Feasibility)
Conclusions and Recommendations to Feasibility (Advantages of
Implementing your Project)
The Marketing Feasibility
Market Description (Target Market)
Supply and Demand Analysis (at least for the last 6 years)
Proposed Marketing Program (Strategies)
Projected Sales

The Technical Feasibility
Detailed Description of the Product or Service
Production Process (through a diagram)
Vicinity Map
Project Location/ Layout
Floor Plan/ Blueprint
List of Materials, Utilities & Equipment Needed
Waste & Waste Disposal Method
Other Technical Requirements
Total Production Cost
The Management Feasibility
List of Administrative Personnel
Organizational Chart
Salaries and Benefits
Management Style (forms of management)
Job Analysis, Descriptions (duties & responsibilities) and Specifications
(requirements)
Related Labor Laws
Personnel Development Program
The Financial Feasibility
Total Project Cost (Initial & Working Capital Requirements)
Pre-operating Costs
Financial Assumptions (Sales & Collections, Depreciation, Tax
Computations, Arbitrary Rates)
5-year Projected Financial Statements
Financial Statement Analysis (profitability, payback period, break-even
analysis, etc)

The Socio-economic Feasibility
Benefits received by your employees
Tax payments to the government
Environmental and community benefits
Timetable
Use of Gantt Chart
Please read for your reference ONLY
Feasibility Study Handbook by Eustaquio Ditablan
A Business Planning Manual by Jorge Cuyugan
Feasibility Studies from the College Library
Other Feasibility Studies from other schools within Nueva Ecija
Internet Research on Feasibility Studies

Thank you
Dean JEFFREY P. FRANCO, CPA, MBA
Instructor
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List of FS Advisers
Mrs. Luzviminda Guinto
Mrs. Chona Matias
Mrs. Marciana Espinosa
Ms. Lorelie Alarcon
Mrs. Cindy Cruz
Ms. Karla Monsale
Mr. Bryan Barlis
Ms. Ernalyn Cariaga
Mr. Lyndon Rayos
Mr. Allan Reyes
Mr. Khriz Fernandez
Ms. Joy Padilla
Estimated FS Costs/Expenses
Adviser P600
English Critic P300 (pay directly to English Critic)
Panelists (3) P200
Professionals depending on the PF (optional)
FS photocopy depending on the volume/quantity
Incidental expenses during oral defense