ASESMENT 1: Project Feasibility Study

Name : Putra Apriyanto Habirun

Student Number : 191317810

1. Why is it necessary to conduct a project feasibility study on various aspects? What

happens if the feasibility study shows that there are several aspects that are not feasible?

The feasibility study may help the investor and project manager to estimate cost that
involved to build some project, it also helps to identify potential risk to prepare the most
optimal alternative. If the project that was observes not feasible, it means you conduct the
wrong estimation and it require repetition through the estimation

2. Why is there a possibility that the project's feasibility will not be achieved at the time of
implementation even though a feasibility study has been carried out when the project was
planned?

Usually, it because the major changed that cannot predict at all for example a pandemic.

3. What should be done if at the time of implementation there is a deviation from the
feasibility study?

You require to conduct an evaluation first if there is a deviation from initial estimation.
This evaluation help to indicate several factors that might result into mistake, in addition
help you to know which aspects that has been not involving in.

4. Why are project cash flows important in engineering economic analysis?

It increases the potential of your project to be choose by investor. It gives visualization

about the cost (outflow) that need until it achieved the time where investor may get
revenue (inflow).

5. Why do project cash flows need to be composed throughout the project life cycle?

Life Cycle Cost Analysis (LCCA) be a basis of cash flow because you need to consider
all cost that involved in such us operational cost, initial cost, transportation cost,
reparation cost, etc. Those costs are important to make sure project is feasible to build.
6. What is the difference between Project Cost Estimation and a Project Economic
Feasibility Study?

Project Cost Estimation is the prediction of overall costs that will be involved in running
the project by considering scope of work such task duration, and available resource.
Weather, Project Economic Feasibility focus on the wider scope not only the cost, it also
conduct analyses through the potential market, the strength, amount of time, risk, and
strategy that used. Those all considerations help to visualize the project will be success in
future or not