Feasibility studies may be defined as an analysis and evaluation of the potential of a project, plan, or idea to determine if it is viable and practical. The ultimate test of a project is to assess whether the project is practical and operational or technically, financially, legally, and economically viable. The study then recommends the most viable option of a (real estate) project.
The primary purpose of a feasibility study is to provide decision-makers with objective information and data that can help them determine whether a project should be pursued, modified, or abandoned. It involves a systematic examination of the project’s strengths, weaknesses, opportunities, and threats (SWOT analysis), as well as an assessment of the potential risks and benefits. It includes the use of project analysis tools such as Net Present Value Analysis, Return on Investment Analysis, Profitability Index analysis, Internal Rate of Return Analysis and Sensitivity analysis among others.
At Touchstone Valuers Limited, we have a team of highly trained and specialized professionals who are able to analyze proposals and advise potential investors on the profitability and viability of their projects to enable them to make informed investment and financing decisions.
