what is a feasibility study 
a feasibility study is a detailed analysis that considers all of the critical aspects of a proposed project in order to determine the likelihood of it succeeding success in business may be defined primarily by return on investment meaning that the project will generate enough profit to justify the investment however many other important factors may be identified on the plus or minus side such as community reaction and environmental impact although feasibility studies can help project managers determine the risk and return of pursuing a plan of action several steps should be considered before moving forward lara antal investopediaunderstanding a feasibility studya feasibility study is an assessment of the practicality of a proposed plan or project a feasibility study analyzes the viability of a project to determine whether the project or venture is likely to succeed the study is also designed to identify potential issues and problems that could arise while pursuing the project as part of the feasibility study project managers must determine whether they have enough of the right people financial resources and technology the study must also determine the return on investment whether this is measured as a financial gain or a benefit to society the latter in the case of a nonprofit project the feasibility study might include a cash flow analysis measuring the level of cash generated from revenue vs the project s operating costs a risk assessment must also be completed to determine whether the return is enough to offset the risk of undergoing the venture 