What is included in the feasibility study. Methodology for compiling a feasibility study

Feasibility Study (TES)

A feasibility study (TES) is a study of the economic profitability, analysis and calculation of the economic indicators of the investment project being created. The purpose of the project may be the creation of a technical facility or the construction or reconstruction of an existing building.

The main task in drawing up a feasibility study is to assess the costs of an investment project and its results, and analyze the payback period of the project.

It is necessary for the entrepreneur himself to draw up a feasibility study to understand what to expect from the project, and for an investor, a feasibility study of an entrepreneur requesting investment is necessary to understand the payback period for the money invested. The development of a feasibility study can be entrusted to a group of specialists (in complex projects), or it can be compiled independently by an entrepreneur.

What are the main differences between a feasibility study and a business plan?

Typically, a feasibility study is compiled for new projects at an existing enterprise, so blocks such as marketing research, market analysis, description of the enterprise and product are not described in such feasibility studies.

But sometimes a situation arises and additionally the feasibility study provides detailed data on the analysis of technologies and equipment and the reasons for their choice.

Thus, a feasibility study (TES) is a shorter and more substantive document than a full-fledged business plan.

Methodology for compiling a TECHNICAL AND ECONOMIC JUSTIFICATION

When compiling a feasibility study, the following sequence of thematic parts is allowed:

Initial data, information about the market sector,

Existing business opportunities of the enterprise,

Sources of raw materials, material factors for business development,

Capital costs expected to achieve the goal,

Operating costs during project implementation,

Production plan,

Financial policy and financial component of the project,

General information about the future project.

In general, the feasibility study provides a description of the industry in which the enterprise operates, and provides a rationale for the choice of territorial and geographical location of the existing and proposed business, as well as describes the type of products manufactured. Here it is necessary to describe and justify prices for manufactured products. At the same time, the financial part of the feasibility study contains information about sources of financing and debt repayment terms, conditions for the use of borrowed funds.

Calculations in a feasibility study consist of tables that present cash flows and balance sheets.

This structure of the feasibility study may not be the only correct one and may vary depending on the specific project. Also, it can be expanded for large and complex business projects.

What is the difference between a feasibility study (TES) and a business plan?

In modern business and office work, the terms business plan and feasibility study have firmly entered the vocabulary of entrepreneurs and economists, but there is still no clear division of such concepts. The material attempts to highlight the similarities and differences between a business plan and a business feasibility study.

Theorists suggest that a feasibility study is the result of a variety of studies, both economic and marketing research. But at the same time, a conclusion is made about the feasibility of the project, and a range of economic, organizational and other proposed solutions for optimizing the production process is determined. At the same time, a feasibility study is often an integral part of a business plan.

At the same time, there is an opinion that a feasibility study, to some extent, is either an abbreviated version of a business plan, or, on the contrary, it is a regular business plan, which is called a feasibility study.

It should be noted that if the procedure for drawing up and the structure of a business plan are clearly spelled out, then when drawing up a feasibility study you can find several different writing options, which differ depending on the problems being considered.

There are the following options for feasibility studies in practice:

Example No. 1

1. the real state of the enterprise;

2. market analysis and assessment of the production capacity of the enterprise;

3. technical documentation;

4. situation with labor resources;

5. organizational and overhead costs of the enterprise;

6. estimation of project duration;

7. analysis of the financial attractiveness and economic feasibility of the project.

Example No. 2

1. the essence of the proposed project, presentation of the basics of the project and the principles of its implementation;

2. a short overview of the market, a presentation of the results of various studies in order to study the demand for a new service or product;

3. technological and engineering aspects of the project:

a) description of the production process;

b) evidence of the need to purchase new equipment or modernize old equipment;

c) comparison of the new product with current quality standards;

d) review of the strengths and weaknesses of a new product or service;

4. financial and economic indicators, including:

a) expected and necessary investments in the project;

b) expected internal and external financial sources;

c) production costs;

5. assessment of the effectiveness and payback of the promoted project, guarantee of repayment of external borrowings;

6. susceptibility of the proposed new product or service to existing risks in the markets, as well as resistance to possible risks in the future;

7. general assessment of the effectiveness of possible external borrowing.

Example No. 3

1. a summary of all the main provisions of the feasibility study;

2. conditions for implementing a new project (who owns the authorship of the project, source material for the project, what preparatory activities and research have already been carried out, etc.);

3. analysis of proposed sales markets, review of the production capabilities of the enterprise, as well as calculation of the peak capabilities of the enterprise and a number of other factors;

4. This section reflects everything related to ensuring production (necessary inventories and production resources), analysis of existing contractors and possible suppliers, analysis of possible costs for various production factors;

5. The section is devoted to the territorial location of the enterprise and the costs associated with this position (approximate estimate of where the enterprise will be located, preliminary calculations related to the payment of rent for a site for production or office space);

6. design and project documentation (assessment of necessary technologies for a new project, assessment of additional auxiliary facilities, without which production would be impossible;

7. organizational and other additional costs associated with the new project (calculation of additional costs, as well as an outline of the expected structure of future production);

8. analysis of labor resources for a future project (assessment of the human resources that will be needed to launch a new project). The estimated number of workers and maintenance personnel and the required number of engineering and technical workers are indicated. In addition, it is indicated whether only local workers or non-resident (foreign) specialists will be involved. The same section indicates calculated labor costs, taxes associated with wages and a number of other points;

9. progress schedule of the presented project;

10. general assessment of the economic and financial viability of the planned project.

Note that many of the examples of feasibility studies given, especially the last example, resemble a detailed business plan.

There is a fine line between a feasibility study and a business plan, and this leads to the fact that with a high degree of confidence we can say that if you are required to provide a feasibility study for a project, you can safely draw up a detailed business plan, while leaving unnecessary disputes - theorists of economic science, but it’s better to get down to business.

Methodology for compiling a feasibility study (TES):

2. General description of the project, introductory information about the project. Information about studies that have been carried out in advance, an assessment of the necessary investments.

3. Description of the market and production. Assessment of demand and forecast of future sales, description of the enterprise's capacity.

4. Raw materials and resources. Calculation of the required volumes of material resources, forecast and description of the supply of resources to the enterprise, analysis of their prices.

5. Selecting the location of the enterprise (enterprise facilities). Justification for choosing a location and assessment of the cost of renting a room or site.

6. Project documentation. Description of the production technology for future products, characteristics of the necessary equipment, additional buildings.

7. Organizational structure of the enterprise. Description of the enterprise organization and overhead costs.

8. Labor resources. Assessment of the need for labor resources divided into categories (workers, employees, top managers, executives, etc.). Estimating salary costs.

9. Timing of the project. Project schedule, cost estimate, trench sizes, etc.

10. Economic calculations. Estimation of investment costs, production costs, financial assessment of the project.

When developing investment projects, analytical work is always carried out in advance, aimed at assessing their prospects, that is, potential profitability and possible risks. One of the most important stages of project assessment is the development of a feasibility study. Let us further consider what a feasibility study is and how to draw it up.

Feasibility study – what is it and how does it differ from other similar documents

Drawing up a feasibility study is the result of studying the possible economic benefits of an investment project, calculation and analysis of its main indicators. It is an official document containing all the necessary research that makes it possible to make a reasonable preliminary conclusion about the feasibility of investing in a specific project.

A feasibility study is usually carried out only for part of a company’s business; it allows one to evaluate the result of qualitative or quantitative changes in its activities. Based on the results of the study, it is concluded that:

the effectiveness of investments in existing or new areas of work;
the need for additional lending;
acquisition or merger opportunities;
introduction of new technologies;
choosing the right equipment;
changes in the organization of enterprise management.

There are other documents developed to assess the feasibility of investing money, such as a business plan and investment memorandum. Feasibility study has a number of similarities and differences with them.

The investment memorandum substantiates the feasibility of investing in the undertaking and is directed outward, to potential investors who are ready to invest in its implementation. Feasibility studies have a more utilitarian function: to determine the feasibility and feasibility of the project, i.e. this document is used more internally within the company.

The main difference between a business plan and a feasibility study is the level of elaboration of all indicators. The business plan describes all processes in interaction with environmental factors, for example:

analysis of markets and trends therein;
marketing strategies;
descriptions of services and goods;
risk analysis.

It is most often compiled to open a new business. The feasibility study is more focused on the internal needs of the company, it is less detailed. Often, a feasibility study becomes an integral part of a business plan.

Rules for drawing up a feasibility study

The feasibility study for each individual project may differ depending on its scale, complexity and focus. The structure of the feasibility study and the content of its parts are determined by the developer, who is responsible for the objectivity of the final results.

The justification for a large-scale undertaking is divided into several successive stages:

The first is a general understanding of the feasibility of the project. Here, the proposed initiative is briefly described, using well-known analogies and generalized assessments. This stage does not require significant investment of money and time. If, based on the data received, management decides that the proposal has prospects, then they move on to the next stage.
The second is called “preliminary selection”, since it offers an approximate justification with an accuracy of estimates within +(-) 20%. Its cost is usually within 1% of the total cost of the undertaking.
The third is final. The calculation of the feasibility study (full) at this stage is worked out to an accuracy of +(-) 10%, and on its basis the final decision is made.

A complete feasibility study of an investment project consists of the following sections:

The specified components of the project feasibility study are a sample applicable to the production of products at the enterprise. If we are talking about construction or the service sector, then the internal content of the sections may have a different look.

Different types of projects and features of justification for them

Depending on the goals of the undertaking, the calculations for them differ, sometimes quite significantly. Let's look at them in more detail:

If the question concerns a large undertaking with the need for significant financial resources, then they use the services of specialized organizations that have experience in creating such documents and the necessary specialists. If the project is of an intra-company nature and is small in volume, then you can get by using your own financial and economic unit.

Feasibility study in the construction industry

The construction feasibility study has its own characteristics. For the construction of a facility, this is the main document at the design stage. On its basis, tender documentation is developed, tenders are organized between contractors, contracts are concluded with the winners, working documentation is prepared and financing is opened.

The main decisions displayed in the feasibility study for construction are:

space-planning;
technological;
environmental protection;
constructive.

Also important are the safety aspects of the future facility from the operational, sanitary-epidemiological, and environmental points of view. In addition to economic efficiency, we should not forget about the social consequences. The completed feasibility study is agreed upon and approved by the supervisory and executive authorities in the prescribed manner.

As an example, we can give an approximate feasibility study for the construction of a residential multi-storey building. In this case, the document will contain the following sections:

A general explanatory note about the proposed structure. It will include information about the location, purpose of the building, its area and number of floors, the total estimated cost of all premises, networks and equipment, and a list of project participants. The source of financing is funds from home buyers and a bank loan. The dates for the start and completion of construction work are indicated.
Information about the land plot intended for construction and data from geological, hydrological, meteorological and geodetic surveys.
A master development plan, including the house itself, the local area and social infrastructure facilities (if any), as well as transport accessibility.
Technological solutions used in construction, for example, the material from which the building is planned to be constructed (concrete, brick).
Architectural and construction solutions that take into account the entire range of functional, social, fire safety, artistic, sanitary and hygienic and other requirements sufficient for the comfortable living of residents.
Characteristics of engineering systems, networks and equipment. Let's take this example. The house is expected to install 9 elevators, a modular boiler room, centralized water supply and sanitation. There is no provision for gas supply; it is planned to use electric energy for domestic needs, so electric stoves are installed in the apartments.
Issues of managing a complex of construction and installation works, ensuring working conditions and worker safety.
Organization of the construction process (availability of a calendar plan broken down by process).
Activities aimed at compliance with environmental protection standards, as well as at preventing emergency situations and organizing civil defense.
Estimate documentation.
Economic and marketing calculations (plan for the sale of apartments by year, calculations for a loan taken from a bank, payment for the services of contractors and suppliers).
Expected financial results. Here all cash flows, the structure of sources of money, all possible losses and profits are calculated. The level of return on investment, NPV, and IRR is calculated. All cash flows are discounted based on the duration of the project.

Each feasibility study is unique in its own way. Despite the general points, the final document for the construction of, say, a hospital will be radically different from the modernization of a mining and processing plant or the expansion of an auto repair shop. It is important that the organization that prepares the documentation knows the current situation in a specific market segment and is able to draw correct conclusions regarding the relative success of the proposed initiative.

Company managers responsible for business development are at the project initiation stage. They need to prepare him for an effective start. First of all, this requires recognition of the need for investment. Even before reaching potential investors, this is achieved through a sequence of prepared events from the presentation of the project to its customer to the defense of the business plan. In this series, a special place is occupied by the feasibility study of proposed investments.

Location of feasibility study

Depending on the established tradition, either the development director or the technical director is responsible for the preparation and presentation of the feasibility study, and sometimes a future curator is involved in this task. Let us immediately distinguish ourselves from such a form as a feasibility study for construction, which is a section of design and estimate documentation. In this article we consider the universal aspect of EFT as a stage of the initiation stage, which, in turn, consists of three parts.

Making a decision to implement the project.
Definition of the design task as a control object.
Organizational support for the launch.

The first part of the initiation begins with the formulation and presentation of an initiative proposal for the project to the customer. Perhaps the investment initiative arose at a strategic planning session and was included in the strategic action plan long before the start. In any case, such a presentation is entrusted to the initiator of the idea.

Next, he develops a project concept, on the basis of which he is given instructions to prepare a feasibility study. The financial and economic section of the document is prepared by financial departments, and the development of a feasibility study in its technical part relates to the production and technical services of the enterprise management.

Project initiation stages

The concept and feasibility study are included in the business plan as its sections. The first part of the initiation ends with a decision on the implementation of the project by the top management of the company, the customer. After the decision to launch, a curator is appointed by a separate order. To better understand the subject, we should distinguish a feasibility study from an investment memorandum and from a business plan as such.

The fact is that the feasibility study of an investment project serves the internal purposes of the company, while the investment memorandum is a document for external use. An enterprise does not always have sufficient funds of its own for investment; its management enters the market in search of investors who are ready to consider the potential of the project in their own interests. The investment memorandum is focused on the values of investors and aims to attract them.

A good business plan is a true work of business art. The rationale in it for the marketing, technical, financial, economic and personnel aspects of the upcoming investment project is deep and extensive. At the same time, the feasibility study reflects information and arguments in favor of executing the project, based on aggregated calculations in the economic and technical areas of its key business idea.

Structure of the feasibility study

The structure of the feasibility study is formed taking into account the scale of the project. There is no doubt that the need for a detailed feasibility study does not always arise. To do this, the level of the project and the degree of its uniqueness must indicate the high labor intensity of design research, multifactorial implementation and the economic complexity of obtaining financial results. The detailed feasibility study in the universal version has the following sections.

General information about the company's activities. Historical background, types of activities, position in the market, technological equipment (uniqueness and modernity of equipment), etc.
Brief analysis of the market and target audience of product consumers.
Issues of interaction with the immediate and distant environment of the investment object (territorial location of the object, social significance, interaction with society, authorities on environmental issues, tax revenues, social security).
The essence of the technical and technological idea of the project. Describes how technical problems are expected to be solved and the benefits of their results.
Description of the organizational and production structures of the company and issues of integration of the investment object into them.
A summary of the requirements for project resources: financial, labor and material.
Integrated calculations of production and total cost per unit of product based on the results of the project.
Calculation of profitability and profitability of the project and production of products at the investment site.
Final calculations on investment efficiency (NPV, IRR, payback period, etc.).
A rough analysis of the project's expected risks.
Primary environmental analysis of proposed investments.
Conclusion with justification of conclusions about the attractiveness of the project from market and financial-economic positions. Implementation recommendations.

The proportion of projects with a detailed business plan is small in many companies. Feasibility studies are used much more often, especially in cases where there are no plans to attract external investors for investment. The economic return of the investments made largely depends on how well the justification is carried out. Therefore, as a conclusion, I would like to emphasize that the customer, supervisor and PM should always remember this stage of justification. A well-founded decision can remove up to half of the possible risks and improve the quality of project activities as a whole.

The economic justification is the reason that motivates an organization to undertake a specific project. This concept includes consideration of the benefits that the enterprise will receive as a result of the project. In addition, the business case examines various alternatives and also analyzes the project from a financial and economic point of view. The latter allows you to assess the investment attractiveness of the project. How to write a business case? An example is in this material.

The essence of the concept

The economic justification is reminiscent of the analysis that we conduct when planning some kind of serious purchase. For example, your own car. Let's assume that we can allocate 35 thousand US dollars from the family budget for this purchase. The first step is to find out which automobile concerns produce cars of the class we are interested in. Then we determine the main technical characteristics and agree on the final price with the company that sells these products. But that's not all. How to write a business case? An example in the matter of choosing a payment scheme.

At the same time, there may be another situation when the buyer is primarily interested in the total amount that will have to be paid for a new car. This is especially true in a situation where the final price is affected by the amount of interest if we are talking about buying on credit. In this case, it is advisable to choose the option that provides the lowest interest rate. Another way is to look for an offer with the lowest monthly payment. Such an acquisition will allow you to stretch out payments for as long as possible. At the same time, the monthly amount of such a payment will not hit your pocket too much. When carrying out a financial and economic feasibility study, attention is paid to similar aspects.

Components of a business case

There are no clear rules for documenting a business case. Its main task, as in the case of a feasibility study of a project, is to determine the material or intangible results of its implementation. Tangible results mean those that can be measured.

Below is a list that gives an idea of those material components that are important in the process of preparing the financial and economic feasibility study of the project. It would be useful to say that not all of them require mandatory documentation. The need to record them on paper depends on the complexity of the project, cost and number of risks for the enterprise.

Material elements of the business case

So, the main tangible components of the business case include savings, cost reduction, the likelihood of generating ancillary income, an increase in the enterprise's market share, customer satisfaction and cash flow assessment. In addition to the material components of the business case, it must also contain intangible components.

Intangible elements of the business case

These may include probable, but not pre-planned, company costs. Among the main intangible elements of the business case are transition costs, operating costs, transformation of business processes, as well as reorganization affecting company employees. In addition, the intangible components of the business case include recurring benefits. How else can you write a business case? Example below.

Other components of the business case

It should be emphasized that along with the benefits and assessment of cash flow in the EO, it is necessary to pay attention to alternative approaches and methods for implementing a specific project in practice. How to write a business case? An example in the following situation.

It is known that there are a large number of manufacturers of different products on the market. However, each of them sets its own price for its own products. What to choose? An option that is a turnkey solution costing $2 million. Or an alternative solution that involves partial purchasing from a third-party manufacturer and, to some extent, using its own resources?

In fact, aspects of precisely this nature often have to be considered when drawing up an economic feasibility study for an enterprise. Any of the proposed options must include the previously listed tangible and intangible components. At the end of the business case, proposals and conclusions must be stated. In addition, you can add additional materials to it.

An important stage in the implementation of a business project is the calculation of the ratio of risks and planned profitability. In economics, there are methods for such calculations that allow you to determine the feasibility of investing money in a project.

For a new business project being developed, it is necessary both for the owners themselves and for raising funds from (banks, investment companies, private investors). The business plan includes a feasibility study (hereinafter referred to as feasibility study). In existing businesses, feasibility studies are also used when modernizing production or introducing a new direction.

A feasibility study is an official document that contains feasibility studies that help determine the degree of feasibility of implementing the intended business project.

It provides calculation and analysis of economic indicators, selects options for the most effective economic and technical solutions, and proposes organizational methods for their implementation at the enterprise.

Purpose and main objectives of the document. Rules for its use

The main purpose of a feasibility study is to demonstrate the income from investing in the implementation of a new project or the modernization of an existing business.

Drawing up a feasibility study allows you to analyze the external and internal factors that will affect the project during its existence. In practice, a feasibility study is compiled as a document when submitting an application for bank lending.

A feasibility study may contain several options for the development of events during the implementation of the project, and, therefore, managers can clearly see the effect of investing money.

Feasibility study allows enterprise managers to decide the following tasks:

Choosing a more effective project;
Attracting additional sources of financing for the investment project;
Increased productivity (if the feasibility study is compiled for an existing business), and as a result, increased profitability.

Structure and content

The structure of the feasibility study of an investment project does not imply strictly established content. The sections that will be included in the feasibility study will depend on the scale of the intended project, the specific goals of the project, the desires of managers, or the requirements of lenders or investors. Thus, the structure and content of the technical and economic content are advisory in nature; we highlight those sections that can be included in the feasibility study.

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Summary

It indicates the name, participants, goals, total cost, sources of raising funds, main indicators of the financial feasibility of the investment project. This part is key, as it outlines the main essence of the project. The information presented in the resume should be presented briefly and concisely.

A detailed explanation of the presented points is given in subsequent sections of the feasibility study.

Description of the enterprise's activities

This paragraph indicates: the industry, the principles of the management structure, the prospects for this area in the market. Possible or existing partnerships are listed.

Description of the project idea

This section highlights the relevance and innovativeness of the implementation of this project, and the problems that its implementation will solve.

If the project proposes the production of a specific product, then its characteristics are highlighted: name, areas of application, competitiveness in the market. Information about environmental friendliness and the possibility of its disposal after use may also be indicated.

The production program is provided, which indicates:

volume of product output;
cost with justification;
market for the produced goods.

Financial component of the project implementation

This part of the feasibility study provides a description of the sources of funds raised, indicates creditors or investors (if any), stages of use and repayment of the money received.

Such information is presented in the form of calculations of economic coefficients.

Economic effect from implementation

The final section provides information about the project, the number of jobs created and other data.

Rules and step-by-step registration instructions

Despite the fact that a feasibility study is compiled for each project individually and there are no uniform rules for its preparation, experts still recommend adhering to certain recommendations. This will make it easier for beginners in this area and will not allow them to deviate from the main task - to fully reflect the feasibility of the project.

Let us present a number of recommended step-by-step actions when registering Feasibility study:

disclose the main characteristics and achievements of the enterprise (if there is an existing one), information about the managers, present the idea of the project;
characterize the industry, its current state, development prospects in general in the country and in a particular region. This may be the demand for the product that will be brought to market as part of the project, an analysis of the activities of competitors and the characteristics of their products;
highlight data on costs and income when implementing a feasibility study. It is important to divide costs into temporary and permanent ones, and calculate income at different levels of demand;
give a general assessment of the project implementation. To do this, a cash flow plan and a forecast balance sheet are drawn up, which also contains Form No. 1.

Mandatory data that must be indicated in the feasibility study

A feasibility study is compiled for various industry areas of business, and therefore its sections can be replaced or added.

But unchanged points in the feasibility study are:

Description of the project, its role in the development of the enterprise, the impact on the economy as a whole of the country or a particular region may also be indicated;
Analysis of market conditions;
Labor cost analysis;
Financial analysis of a new project;
Payback period planning;
Conducting an economic assessment of an investment project.

Distinctive features of the document

In order to understand the distinctive features of a feasibility study from a business plan, it is necessary to introduce their concept.

A business plan is a document that characterizes the implementation of a business project from all aspects of business activity.

The feasibility study is description of the project implementation from the perspective of economic indicators and characteristics of the necessary equipment to start the project.

A business plan is a more comprehensive presentation of material about the project and contains a lot of theoretical information. A feasibility study more clearly shows the effectiveness of an investment. Thus, the business plan includes a feasibility study.

Let us more clearly present the main parameters that distinguish a feasibility study from a business plan in the table.

Comparison parameter	Feasibility study	Business plan
Purposes of compilation	Justification of the profitability and effectiveness of the project only from the economic and technical side	Assessment of all factors influencing the project
Consumers	- management personnel; - shareholders; - partners; - less often banks and investors.	- investment companies; - venture funds; - large banks.
Document structure	- general project parameters; - items of expenses and income, ratio analysis; - justification of the need for financial resources.	- project parameters, as well as information about the company and founders; - market analysis, including marketing research; - organizational plan; - the impact of the regulatory framework on the implementation of the project; - risks, including economic ones; - the financial analysis; - calculation of the economic effect from the implementation of the project.
Cases in which a document is drawn up	- search for funds for the implementation of new equipment; - launch of a new production line; - other projects related to modernization.	- launch of an innovative project; - startup launch; - raising the full amount necessary for the implementation of the project.

Features of feasibility studies for various types of projects

The feasibility study is developed, as noted above, for various purposes of the enterprise. In this connection, in theory, several types of feasibility studies for project implementation are distinguished.

Let's present them in more detail.

Feasibility study for an investment project a visual display of the project’s profitability is compiled. Within its framework, products that are often already proven and familiar to the market are sold. The customers of this type are investors.

For an innovative project a more detailed efficiency calculation is required since the product is assumed to be new. There are significantly more risks in such a project. The main consumers of this type of feasibility study are managers.

Feasibility study for a construction project has a more complex structure. It reflects the production capacity and capacity of the capital structure. Research of the real estate market of a particular region is provided, information about the land plot is indicated.

Feasibility study for reconstruction aimed at disclosing information about the need to update the production complex. The emphasis in the structure of this type of document is on finishing work; if necessary, the purchase of new equipment is indicated.

Preparation of a feasibility study during modernization carries the same meaning as during reconstruction, only in this case a justification is given for the replacement or modification of fixed assets: equipment, machinery, and others.

Feasibility study for an agricultural project contains in its structure options for using existing land plots, farming methods, models for using the resulting products (further processing, sale).

About feasibility studies for geological projects, see the following video: