Description
Economic feasibility is the process of collecting information about a proposed project and then analyzing it to find out the feasibility of implementing it, reducing risks and profitability of the project. Therefore, it is necessary to know the extent of the success or loss of this project compared to the local market and its needs, and then anticipate the ability of companies to remain as a profitable business during a specified period of time. Good preparation for economic feasibility is one of the most important steps for the success of projects. The success and effectiveness of projects depends primarily on proper planning. Accurate planning is the main pillar on which the expected financial return from the project depends. Hence the need for what is known as economic feasibility. The economic feasibility study is considered one of the most important branches of the feasibility study in general, and the economic feasibility study is known as a scientific method for estimating the possibilities of success of an investment idea before actual implementation, in light of the ability of the project or investment idea to achieve certain objectives for the investor, and therefore the economic feasibility study is a practical tool The project avoids risks and bears losses, as the study precedes making any investment decision, and the study precedes operations. Accordingly, the economic feasibility study is the means by which the appropriate investment decision is taken that achieves the desired goalsTherefore, any businessman or student in the field of accounting or management must study how to prepare economic feasibility studies because of their great importance in making the decision to establish a project or making a differentiation between several projects to choose the optimal investment from them.
