Purpose of a Financial Feasibility Study
Financial feasibility focuses specifically on the financial aspects of the study. It assesses the economical viability of a proposed venture by evaluating the startup costs, operating expenses, cash flow and making a forecast of future performance.
In this regard, what is a financial aspect?
FINANCIAL ASPECT. INTRODUCTION Financial Aspect projects how much start-up capital is needed, sources of capital, returns on investment, and other financial considerations. It looks at how much cash is needed, where it will come from, and how it will be spent.
Subsequently, question is, what is the meaning of financial feasibility? Definition. A study on whether a project is viable after taking into consideration its total costs and probable revenues. If the revenues cover the costs of the project, then the project is visible.
Likewise, people ask, how do you write a financial aspect for a feasibility study?
Financial Projections include:
- Your net income.
- A multiple you justify with PE ratios or acquisition amounts you found in your feasibility research.
- Pre-money valuation (net income x multiple)
- Your requested investment amount (the total shortfall in your P&L)
- Post-money valuation (Pre + investment)
What is socio economic aspect in feasibility study?
SOCIO–ECONOMIC. SOCIO–ECONOMIC ASPECT. Socio–economic aspect aims to discuss and determine what are the social implications of the study to the. society, the economic implications and the environment implications of the study to the economy.