Feasibility study, or also Feasibility study, is the analysis of the economic, financial and social feasibility of an investment (given a technological option). In the pre-investment phase") the eventual subsequent stage is the final design of the project (preparation of the project document), taking into account the inputs of a productive process, which traditionally are: land "Land (economy)"), labor "Labor (economy)") and capital "Capital (economy)") (which generate income: income, salary and profit).
Before starting in detail the study and comparative analysis of the advantages and disadvantages that a certain investment project would have, it is necessary to carry out a pre-feasibility study; which consists of a brief investigation into the framework of factors that affect the project, as well as the legal aspects. Likewise, the different techniques (if they exist) of producing the good or service under study and the possibilities of adapting them to the region must be investigated. In addition, the availability of the main inputs required by the project must be analyzed and a market survey carried out that approximately reflects the possibilities of the new product, with regard to its acceptance by future consumers or users and its form of distribution.
Another important aspect that must be addressed in this preliminary study is that which concerns the quantification of the investment requirements posed by the project and its possible sources of financing. Finally, it is necessary to project the financial results of the project and calculate the indicators that allow it to be evaluated.
Components
The prefeasibility study is carried out with the objective of having information about the project to be carried out, showing the alternatives available and the conditions surrounding the project. This prefeasibility study is composed of:.
Market study. It is one that seeks to project values for the future; It will seek to predict variations in the demand for a good, levels of growth in sales, future market potential, number of users in a given time, behavior of the competition, etc. In any predictive study, elements such as the historical behavior of demand, changes in market structures, increase or decrease in the level of income must generally be taken into account.
It is the analysis and determination of supply and demand. In addition, many operating costs can be determined by simulating the future situation and specifying the policies and procedures to be used as an advertising strategy.
Pre-investment studies
Introduction
Feasibility study, or also Feasibility study, is the analysis of the economic, financial and social feasibility of an investment (given a technological option). In the pre-investment phase") the eventual subsequent stage is the final design of the project (preparation of the project document), taking into account the inputs of a productive process, which traditionally are: land "Land (economy)"), labor "Labor (economy)") and capital "Capital (economy)") (which generate income: income, salary and profit).
Before starting in detail the study and comparative analysis of the advantages and disadvantages that a certain investment project would have, it is necessary to carry out a pre-feasibility study; which consists of a brief investigation into the framework of factors that affect the project, as well as the legal aspects. Likewise, the different techniques (if they exist) of producing the good or service under study and the possibilities of adapting them to the region must be investigated. In addition, the availability of the main inputs required by the project must be analyzed and a market survey carried out that approximately reflects the possibilities of the new product, with regard to its acceptance by future consumers or users and its form of distribution.
Another important aspect that must be addressed in this preliminary study is that which concerns the quantification of the investment requirements posed by the project and its possible sources of financing. Finally, it is necessary to project the financial results of the project and calculate the indicators that allow it to be evaluated.
Components
The prefeasibility study is carried out with the objective of having information about the project to be carried out, showing the alternatives available and the conditions surrounding the project. This prefeasibility study is composed of:.
Market study. It is one that seeks to project values for the future; It will seek to predict variations in the demand for a good, levels of growth in sales, future market potential, number of users in a given time, behavior of the competition, etc. In any predictive study, elements such as the historical behavior of demand, changes in market structures, increase or decrease in the level of income must generally be taken into account.
Technological study. This study aims to provide information to quantify the amount of investments and operating costs relevant to this area.
It is usually considered that the most modern procedures and technologies should be applied, a solution that may be optimal technically, but not from a financial perspective. One of the results of this study will be to define the production function of the good or the needs of capital, labor and material resources, both in the start-up and for the subsequent operation of the project.
The technological study must serve to find the best way to achieve the production of the good or service, and include basic engineering and detailed engineering.
Basic engineering:
Detail engineering:
Supplies. The analysis and evaluation of raw materials, as well as auxiliary inputs and services required in the production of a good or service requested in production, helps to know the characteristics, requirements, availability, costs, location and other important aspects for the investment project.
The determination of raw materials is derived from the type of product to be obtained, the volume demanded as well as the degree of utilization of the installed capacity.
In general terms, raw materials and inputs are classified as follows:
a) Raw materials:
b) Industrial materials:.
c) Auxiliary materials.
you.
d) Services:
Financial study. The objectives of this stage are to organize and systematize the monetary information that the previous stages will provide, prepare the analytical tables and additional background information for the evaluation of the project, and evaluate the previous background information to determine its profitability.
Machinery study").
It is the analysis and determination of supply and demand. In addition, many operating costs can be determined by simulating the future situation and specifying the policies and procedures to be used as an advertising strategy.
Technological study. This study aims to provide information to quantify the amount of investments and operating costs relevant to this area.
It is usually considered that the most modern procedures and technologies should be applied, a solution that may be optimal technically, but not from a financial perspective. One of the results of this study will be to define the production function of the good or the needs of capital, labor and material resources, both in the start-up and for the subsequent operation of the project.
The technological study must serve to find the best way to achieve the production of the good or service, and include basic engineering and detailed engineering.
Basic engineering:
Detail engineering:
Supplies. The analysis and evaluation of raw materials, as well as auxiliary inputs and services required in the production of a good or service requested in production, helps to know the characteristics, requirements, availability, costs, location and other important aspects for the investment project.
The determination of raw materials is derived from the type of product to be obtained, the volume demanded as well as the degree of utilization of the installed capacity.
In general terms, raw materials and inputs are classified as follows:
a) Raw materials:
b) Industrial materials:.
c) Auxiliary materials.
you.
d) Services:
Financial study. The objectives of this stage are to organize and systematize the monetary information that the previous stages will provide, prepare the analytical tables and additional background information for the evaluation of the project, and evaluate the previous background information to determine its profitability.