A feasibility study is a document aimed at objective and rational disclosure of strengths and weaknesses of the proposed investment project, the possibilities of operation and risks during implementation, required resources, and, ultimately, the chances of success. As a general rule, development of a feasibility study precedes preparation of technical documentation and project implementation.
When preparing a feasibility study for an investment project, the required costs are compared with the projected income and based on the calculations a conclusion is made on the efficiency of investment and the payback period. This documentation has one goal – to justify the profitability of investments in this project.