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
you can do feasibility analysis by evaluating the following parameter; market,financial,technical and legal.
organizational
This is a long subject, you might want to check this article: http://www.pmhut.com/initiating-phase-feasibility-study-request-and-report
A feasibility report is typically prepared by a project manager, business analyst, or a team of specialists who conduct market research, financial analysis, and risk assessment. The report may involve input from various stakeholders, including engineers, architects, and financial analysts, depending on the project's nature. Ultimately, the goal is to evaluate the project's viability and provide recommendations based on the findings.
The feasibility of a project as an acceptable financial risk is determined by several key factors, including its projected return on investment (ROI), cost-benefit analysis, and market viability. A thorough assessment of cash flow projections and funding requirements also plays a crucial role in evaluating financial sustainability. Additionally, sensitivity analysis helps identify potential risks and uncertainties that could impact financial outcomes, ensuring that the project aligns with the organization's risk tolerance and strategic goals.
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.
you can do feasibility analysis by evaluating the following parameter; market,financial,technical and legal.
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.
The four main criteria used to test the feasibility of a project are technical feasibility, economic feasibility, legal feasibility, and operational feasibility. Technical feasibility assesses whether the project's technology and resources can achieve the desired outcomes. Economic feasibility evaluates the cost-effectiveness and financial viability of the project. Legal feasibility examines compliance with laws and regulations, while operational feasibility considers whether the organization can effectively implement and sustain the project within its existing operational framework.
organizational
organizational
Project finance modeling is a specialized discipline within financial modeling that focuses on assessing the feasibility, risks, and financial viability of large-scale projects.
This is a long subject, you might want to check this article: http://www.pmhut.com/initiating-phase-feasibility-study-request-and-report
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.
sample of feasibility study
technical feasibility financial feasibility delivery wise feasibility these three i know
1. Feasibility Study Request 2. Feasibility Study report