Feasibility Study

Question 1

a comprehensive evaluation of a proposed project that evaluates all factors critical to its success in order to assess its likelihood of success

Answer 1

feasibility study

Question 2

benefit to society regardless of who in society

Answer 2

economic benefit

Question 3

an analytical report of the assessment of a project concerning its market, technical, financial, socio-economic and management feasibilities

Answer 3

feasibility study

Question 4

benefit to the project owner

Answer 4

financial benefit

Question 5

part of a feasibility study that capsulizes the project and its financial and economic feasibilities

Answer 5

project summary

Question 6

part of a feasibility study that affirms that the machinery, equipment and facilities and their operating conditions are doable

Answer 6

technical feasibility

Question 7

part of a feasibility study that deals with the marketing aspects of the project and the fitness of the implementor to carry them out

Answer 7

market feasibility

Question 8

part of feasibility study that presents information and analyses on the financial viability of the project

Answer 8

financial feasibility

Question 9

part of feasibility study that shows the economic viability, socioeconomic impact such as, but not limited to, reduction of production cost, increase in yield and income of beneficiaries, and generation of jobs and employment

Answer 9

socio-economic feasibility

Question 10

part of feasibility study that considers institutional or organizational setup, manpower requirements and administrative support

Answer 10

management feasibility

Question 11

primary economic feasibility indicators

Answer 11

NPV
IRR
BCRs

Question 12

secondary economic feasibility indicators

Answer 12

PBP
ROI

Question 13

a method for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning and disposing.

It can be done using 1) Deterministic Method (ex. Sensitivity analysis) and 2) Probabilistic Method (ex. Statistical projection)

Answer 13

Life Cycle Cost Analysis (LCCA

Question 14

for a revenue-generating project, use what type of analysis?

Answer 14

financial analysis

Question 15

economic analysis is used for what type of project

Answer 15

service-oriented development project

Question 16

process of evaluating the financial aspect of a proposed project of business venture to determine its potential for success

Answer 16

financial feasibility

Question 17

Estimation of total costs and considerations of contingencies and unexpected costs

Answer 17

project costs

Question 18

Estimation of projected revenues and Analysis of revenue streams

Answer 18

project revenues

Question 19

Calculation of key financial metrics (NPV, IRR, payback period; Analysis of profitability)

Answer 19

determine profitability

Question 20

Projection of expected cash flow; Analysis of impact on liquidity and financial position

Answer 20

cash flow analysis

Question 21

Identification of potential risks and uncertainties ; Analysis of impact on financial performance

Answer 21

risks and uncertainties

Question 22

Also called net income statement or statement of earnings

Financial statement that shows how profitable a business was over a given reporting period

Shows revenue, minus expenses and losses

Answer 22

income statement

Question 23

financial statements providing aggregate data regarding all cash inflows from ongoing operations and external investment sources.

Also includes all cash outflows

Answer 23

Cash Flow Statement

Question 24

Also referred to as statement of net worth or statement of financial position

Displays company’s total assets and how they are financed (through debt or equity)

Based on fundamental equation: Assets = Liabilities + Equity

Answer 24

Balance Sheet

Question 25

refers to the direct costs of producing the goods sold by a company.

Includes cost of materials and direct labor.

Answer 25

Cost of Goods Sold

Question 26

Discusses project’s basic and operational flow

Answer 26

technical aspect / technical feasibility

Question 27

4 components of a technical feasibility (4 Ms)

Answer 27

machine
men
methods
money