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It usually involves checking 2 things.

1. Does the company executing the project have enough funds to run it? Lets say a project needs 10 people to work for 1 year and use 10 computers, 1 server, 4 software licenses etc, the Management will check if they have funds that can be utilized over the duration of the project

2. Will the project generate enough benefits to warrant the expenditure? If a project that costs 1 million and will generate $500,000 every year and another project that costs 2 million and will generate $600,000 every year are available, the management will most probably select the 1st project that generates 500k income every year

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12y ago
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7y ago

It is the assessment of financial aspect of things. Financial feasibility is based on expenses, revenue, investor income and start up capital.

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Q: What is financial feasibility of a project?
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Related questions

What is financial Feasibility study?

Financial feasibility is to check that the project is giving higher rate than expected rate of return.In other word ,it is the decision whether to go for the project or not.


Project feasibility format?

you can do feasibility analysis by evaluating the following parameter; market,financial,technical and legal.


What are the content of the feasibility study?

The feasibility study contents are: market analysis and the scope of the project; social and environment feasibility; technical feasibility; risk studies; preliminary cost assessment; the financial analysis; economic feasibility and project implementation outline. These help in the process of decision making of the proposed project.


What feasibility determines if the project is an acceptable financial risk and if the organization can afford the expense and time needed to complete the project?

organizational


What is feasibility determines if the project is an acceptable financial risk and if the organization can afford the expense and time needed to complete the project?

organizational


PROJECT FINANCE MODELING?

Project finance modeling is a specialized discipline within financial modeling that focuses on assessing the feasibility, risks, and financial viability of large-scale projects.


Assess the financial feasibility of a project?

This is a long subject, you might want to check this article: http://www.pmhut.com/initiating-phase-feasibility-study-request-and-report


What is feasibility study and give the ten stages of feasibility study?

It is the study on project feasibility which give you details whether a project can be successful or not, the time the project will take to be completed, and the cost of the project.


Project feasibility study example?

sample of feasibility study


What are the 5 aspects of feasibility study?

technical feasibility financial feasibility delivery wise feasibility these three i know


Components of project feasibility?

1. Feasibility Study Request 2. Feasibility Study report


What is the general objectives of the feasibility study?

Feasibility is the study of whether or not a project is worth doing. The process followed in making this determination is called a feasibility study. The main objective of the feasibility study is to prepare 1) Project Specification 2) Cost Benefit Analysis 3) Prepare Feasibility Report. The project specification has all the information about the project which is more like a guideline for the project. It gives a great insight to the management about the kind of investment involved for undertaking a project along with the manpower, hardware, software and other factors. Cost Benefit analysis is a method to identify the gross benefit involved in the development and implementation of a new system. Basically, it tells the organization whether they are economically prepared for the project. Feasibility Report contains various feasibility studies like:- Technical Feasibility Economic Feasibility Operational Feasibility Social Feasibility Time Feasibility Management Feasibility And Legal Feasibility.