A feasibility study with cost–benefit analysis (FSCBA) examines social and financial benefits and costs, with an emphasis on monetizing non-financial elements. It includes option and scenario analysis and determines which option generates the greatest social benefits and justifies further financing.
The importance of conducting a feasibility study
The importance of conducting a feasibility study depends on the ultimate purpose of its purpose, but the main characteristics of the study itself are, regardless of the context, always unambiguous and consist of:
- assessment of the economic justification of the project – in addition to the financial viability of the project, it is essential to determine whether the project is socio-economically justified, taking into account all positive and negative external effects that the individual does not influence on
- transparency and argumentation towards all stakeholders – the study ensures transparency in the planning and decision-making process, documenting the importance of a particular project along with its expected benefits.
- risk and sensitivity management – By conducting a risk and sensitivity analysis, key variables that could jeopardize the project’s success are identified, providing the basis for mitigation and proactive risk management.
Feasibility and Benefit Study Preparation Process
The process of preparing a feasibility and benefit study consists of the following phases:
- conceptualization of the project by the needs and requirements of the client
- analysis of the current and future situation and collection of necessary documentation
- development of a financial model and feasibility and benefit study.
In addition to the above, we provide our clients with consulting services and find the optimal source of financing for the investment in question from national and EU funds.