Economic Feasibility Studies

    Khandhar Mehta and Shah | Economic Feasibility Studies

    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.

    We help the companies to remove each layer of complexity involved in the project’s feasibility study. We enable them to meet the requirements and expectations of investors and stakeholders when looking to establish a new project or initiative. In a way, we aid the company in building a business case to convince its investors that the project is worth investing, obtain funding approval for the project and prove that it should be prioritized over others.

    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
    • Identification of the capabilities of the company that can facilitate the project
    • Finding the weaknesses of the company that require external sourcing or internal development
    • Profiling of other stakeholders involved in the project
    • Analysis of the cost and expenses for implementation of the project and undertake a financial feasibility study
    • Analysis of the potential risks that may impact the
      project and conduct a business feasibility study and provide a business feasibility report
    • Financial budgeting and planning for the project
    • Understanding of the company’s perspectives of growth and clear definition for the same to facilitate measurement of the results
    • Defining the critical success factors for each stage of the project for its gradual completion
    • Developing the model for economic feasibility study and projections for future including calculation of NPV, payback period, discounted payback period, Average accounting return (AAR), Internal Rate of Return (IRR), and Profitability Index (PI)
    • Providing alternative models or approaches that may prove to be easier in implementation and more value-generating for the company
    • A deep examination of the alternatives for comparison purposes
    • Assessment of the impact of the project on all the stakeholders and interest groups
    • Consideration of the timeline for decision making and execution
    • Recommendations for the project’s feasibility and the best approach for its execution

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    Economic Feasibility Studies Methodology:

    Key Differentiators

    Economic Feasibility Studies

    Our team provides an independent assessment of the project based on their knowledge, capability, and experience of handling projects of different industry sectors and employing the global best practices.
    Our team provides the required market knowledge of the relevant sector to help the client company and its management in assessing the value generated from their investment made in the project and thus determine its economic feasibility.
    Our team of dedicated and committed professionals conducts an overall analysis of the projects’ strengths, weaknesses, and validity of assumptions based on the identification of its financial and non-financial costs and benefits.
    We render a well-written business feasibility report based on the economic feasibility analysis of the project so that the company is enabled to assess the costs, benefits, and viability before finalizing and allocating the financial resources.

    our clients say

    trust.  transparency.  professional expertise.

    KMS understands our business and industry, and this is how they conducted a proper assessment of our objectives and goals. They did an in-depth economic feasibility study of our new project and supported us in understanding it better. We highly recommend KMS for their economic feasibility study services.
    General manager, IT company
    Working with KMS and its team was a pleasurable and delightful experience. They undertook a strong grasp and understanding of our business operations and helped us in exploring the new project’s viability. The team knows its work, has a great knowledge base and is quite committed to making our project successful. A very big thank you to KMS and its team!
    Partner, Manufacturing firm
    KMS’s team was very approachable and reliable. They carried out economic feasibility studies for us and a commercial viability report, based on which we took further decisions. Their work quality exceeded our expectations. We are extremely lucky to have across KMS for our feasibility study task. Wish you success always!
    CEO, KPO firm

    frequently asked questions(faqs)

    An economic feasibility study is a type of cost-benefit analysis of the examined project to assess whether it is beneficial to execute the project or not.
    Before starting a project, it is essential to conduct the economic feasibility study to determine if a plan of action is going to produce the expected results. That is, whether or not it will work, and whether or not it is worth doing economically.
    A document that examines the prospective solutions to the business problem or opportunity and identifies which of the prospective solutions are viable for further analysis is called an economic feasibility report.