Name: Sheenalyn B.

Abordo BSIE-IV Date: September 15, 20203

IEng 161 - Project Feasibility Study
Learning Tasks/Activities No. 1.1
In your own words, answer the following questions. When using a reference, cite your
reference after your answer.
1. Define the feasibility study.
A feasibility study resembles the investigative work of a detective for business plans. Its
purpose is to ascertain whether a project can achieve success and profitability. Typically, it is
applied to profit-driven ventures and evaluates their technical feasibility, financial viability,
legal compliance, and market potential. It involves a thorough examination to confirm that
the concept can be translated into a tangible and enduring project.

2. Discuss the nature of a feasibility study by describing the key terms in the definition.
Nature of Feasibility Study
1. Systematic Inquiry
Feasibility studies are inherently characterized by systematic inquiry, a fundamental element
of their essence. This structured approach is indispensable, as it strictly adheres to predefined
procedures to accomplish the study's objectives. Systematic inquiry embodies a methodical
process rooted in systematic principles, encompassing a step-by-step journey within the
context of a feasibility study, with the aim of uncovering potential business prospects.
Importantly, it should be noted that these processes retain flexibility, allowing for adaptations
when confronted with varying conditions during the study. Given the diverse nature of
components and objectives within a feasibility study, meticulous organization and seamless
interconnection are essential to achieving the study's ultimate purpose.
2. Proposed Business Activity
Another aspect of feasibility studies pertains to the proposed business activity, which must
meet specific criteria to be classified as such during the feasibility study. These criteria
encompass the following aspects: it should be profit-oriented - meaning the business aims to
generate revenue, a fundamental objective for any enterprise; it should be sustainable -
capable of operating in the long term; and it should involve financial transactions, including
the flow of cash and monetary measurements. This is because feasibility studies play a
crucial role in enhancing and advancing businesses, making it imperative to consider these
attributes when applying a feasibility study to improve and enhance an organization.

3. Viability in all Areas

When embarking on a feasibility study to entice and convince potential investors in a

business venture, comprehensive viability across multiple dimensions becomes utterly
indispensable. These dimensions encompass technical, financial, socioeconomic, legal,
operational, and marketing facets. The thoughtful consideration of all these factors isn't just a
mere necessity; it's the linchpin for a business's longevity and resilience in its industry,
underpinning the very feasibility of the study itself.

4. Measurement of profitability level

When you're deep into a feasibility study, one of the critical aspects to gauge is how
profitable your business is. It's like looking into a mirror to see how your business is
doing, how it manages its earnings, and whether it can keep making the money it needs.
Profitability essentially tells you if your company can sustain the profits required for your
industry, and if it can keep growing. It also shows you how well your business turns its
sales and operations into actual money.

3. Identify the qualities of a good feasibility study. Discuss.

An effective feasibility study should embody four essential qualities: it must be

comprehensive to provide a holistic view of the project, including insights for users and
potential investors; it must be objective, preventing bias and instead offering an impartial
evaluation, complete with a critical analysis highlighting project strengths and
weaknesses; it should be presented in a simple, easy-to-understand manner, ensuring
clarity for all stakeholders by defining and explaining terms and concepts; and lastly, it
must be utterly reliable, with all information and data presented being credible, objectives
met, and the overall project depicted truthfully, ensuring the study's ultimate
trustworthiness in guiding business decisions.

4. Discuss the benefits that may be derived from a feasibility study.

The feasibility study stands as the most potent scientific approach for crafting new projects or
reshaping existing ones.
Its comprehensive nature ensures meticulous control and resolution, effectively minimizing
operational challenges during project execution.
Moreover, it emerges as the ultimate litmus test for project approval or rejection, providing
investors with the foundation for informed decisions.
Beyond this, it serves as an indispensable tool for addressing financial aspects, particularly in
securing capital funding.
Additionally, it proves invaluable in gauging a proposed project's profitability, ultimately
determining a company's resilience and success within its industry
5. Describe the limitations of a feasibility study.

While feasibility studies offer valuable insights, they come with certain limitations. One
example is the challenge of accessing essential information, often requiring permission
from authorized individuals, which can be time-consuming. Additionally, competitors
may be hesitant to share sensitive data in fields like taxation, manufacturing, and
marketing due to risks involved. Finding an expert to conduct the study is crucial, as it
demands specific skills and experience. Lastly, no matter how skilled the study's
proponent is, the unpredictability of the future means that forecasts remain uncertain,
beyond our control.