Economic Feasibility Studies
Khandhar Mehta and Shah | 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
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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
Khandhar Mehta and Shah
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As a CA firm in Ahmedabad, we always focus on giving our clients the best in class services that reflect our values and vision of transparency, flawless, and professional work. Check out our website to understand and know more about our services and firm.
Economic Feasibility Studies Methodology:
Key Differentiators
Economic Feasibility Studies
KMS 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.
