Major Aspects of a Project Feasibility Study

1. Management Aspects a. Description of Sponsors/ Investors b. Legal Form of Venture c. Management Setups/ Organogram/ Organization Structure d. Integration with Bankers, Lawyers, Auditor(s) 2. Commercial/ Marketing Aspects a. Product Mix /Service Mix b. Demand Analysis i. Market Tends of Demand ii. Customers Demand iii. Demand forecasts c. Identification of Competitors d. Strengths, Weaknesses, Opportunities and Threats e. Business environment analysis

3. Technical Aspects a. Production Capacity Planning b. Manufacturing Process c. Availability of the Technology d. Land and Location e. Layout with Scope for Expansion f. Machinery System

g. Materials, Raw Materials and Auxiliary Materials h. Utility i. j. Manpower Planning Repairing and Maintenance

k. Scheduling

4. Financial Aspects a. Project Cost Estimation i. Project Fixed Cost ii. Working Capital Requirement

b. Project Financing i. Equity Capital ii. Loan Capital c. Investment Worthiness i. Income Statement ii. Cash Flow Statement iii. Balance Sheet (Actual and Project) iv. Break Even Analysis v. Payback Period vi. Net Present Value (NPV) vii. Internal Rate of Return (IRR) viii. Benefit Cost Ratio (BCR) d. Risk Analysis (Sensitivity Analysis) i. Optimistic Scenario ii. Normal Scenario iii. Pessimistic Scenario e. Tax Considerations 5. Socio-Economic Aspects a. Contribution to GDP b. Employment generated c. People-Planet considerations d. Impact on environment e. Ways to mend/contain impacts on environment