Feasibility report

A feasibility report is the results of a feasibility study.

This report details whether or not a project should be
undertaken and the reasons for that decision.
Report Content
1.
2.
3.
4.
5.
6.
7.

Introduction/Executive Summary
Background
outline of project
Methodology/method of analysis
Overview of alternatives
Conclusion
Recommendation

Introduction/Executive summary
1. It state objective of the report and of the project
2. It should refer terms of references
3. Also it should state the constraints within which it has
been conducted
4. Executive summary:
This should concise summary of the major
recommendations of the report within 6 pages so
that it quickly understood by senior executive

Background

Some feasibility reports may require some

background discussion in order to make the rest of
the report meaningful to readers.

Describe your proposed plan in sufficient detail state

if it worked elsewhere and how it was implemented
Background on the Situation.For many feasibility
reports, you'll need to discuss the problem, need, or
opportunity that has brought about this report.

Outline of system
Outline of system involves description of project
List type and quality of product(s) or service(s) to be
marketed.

Outline the general business model (ie. how the

business will make money).

Include the technical processes, size, location, and kind

of inputs.

Specify the time horizon from the time the project is

initiated until it is up and running at capacity.

Methodology
It involves discussion on method of analysis for
feasibility study
Return on Investment (ROI) analysis
For comparing overall profitability
ROI = Estimated lifetime benefits - Estimated
lifetime costs
Estimated lifetime costs
or
ROI = Net Present value / Estimated lifetime costs

SWOT Analysis :STRENGTHS

WEAKNESS

MAINTAINING THESE
STREGTHS

OVERCOMING THESE
WEAKNESS

What can do for maintain these

strengths?

What should I do to overcome

these weakness?

OPPORTUNITIES

THREATS

TAKING ADVANTAGE OF THESE OVERCOMING THREATS

OPPORTUNITIES
What can I do to take the
advantage of these
opportunities?

What can i do to overcome these

threats?

Overview of alternatives
Possible alternatives
Sticking with the current system should always be
studied as one alternative
Different business processes for solving the problems
Different levels/types of computerization for the
solutions
Advantages and disadvantages of the alternatives
The major possible alternatives should be discussed and
compared using clearly defined criteria.

1. Estimate Equity and Credit Needs

Identify alternative equity sources and capital availability
Producers, Local Investors, Angel Investors, Venture
Capitalists
Identify and assess alternative credit sources.
Banks, Government (direct loans or loan guarantees),
Grants,
Local and State Economic Development Incentives.
Assess expected financing needs and alternative sources.
Interest Rates, Terms, Conditions, Etc.

2. Cost and benefits evaluation

It demonstrate how this proposal is feasible
It involves discussion technological feasibility, economic practicality,
social desirability, and ecological soundness

Examples of benefits

1. cost reductions
2. error reductions
3. increased throughput
4. increased flexibility of operation
5. improved operation
6. better (e.g., more accurate) and more timely information.

 Types of costs
Development costs purchasing cost, Installation cost,
operational cost

Conclusion
The conclusions section of a feasibility is the
restatement of the conclusions you have already
reached in the comparison sections. In this section, you
restate the individual conclusions, for example, which
model had the best price, which had the best battery
function, and so on.
It must untangle all the conflicting conclusions and
somehow reach thefinal conclusion, which is the one
that states which is the best choice

Recommendation

The final section of feasibility reports states the

recommendation.
The recommendation section should echo the most
important conclusions leading to the recommendation
and then state the recommendation emphatically.
the basis for that judgment has to be stated somewhere
in the requirements section.