Economic Feasibility Studies
A company keeps on investing in new projects or initiatives for expansion and growth.
However, investment of time and resources is not the first step. The first step is a thorough analysis of the prospective project to understand if it is viable or not. Amongst the various feasibility studies, checking the practicality of a project from the perspective of costs incurred and monetary benefits achieved is a critical analysis and an important one. Such a study improves the trustworthiness of a project, thereby enabling companies to determine the positive commercial benefits that the proposed project will produce. We, at KMS, help our client companies by conducting such economic feasibility studies and assisting them in capital budgeting decisions.
Objectives of Economic Feasibilities Study
To understand if the project will generate an acceptable return on investment (ROI) to cover the cost of capital, considering the risks associated with the project. To check if the net present value (NPV) remains positive if one discounts the cash flows by the desired rate of return. An economic feasibility study is undertaken for making the following decisions:
Investment decision. Financing decision. Dividend decision.
Our Services: Economic Feasibility Studies
Khandhar Mehta and Shah
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