FEASIBILITY AND VIABILITY APPRAISAL

Feasibility and Viability appraisals are usually not accorded its critical position in investment and project equations; such that investors and developers would have taken an irrevocable decision to execute based on their instinct even before commissioning a feasibility and viability study.

This often leads to disastrous effect on the overall performance and final outcome of some projects.

Feasibility study therefore, is concerned with the determination of the possibility and practicability of an investment or project considering the economic (financial) and non-economic (physical and locational) criteria.

Viability study on the hand is the profitability and benefits of an investment and project. It looks at the costs and benefits associated with the project when the project has already passed the feasibility assessment stage. 

In most situations clients request for feasibility study when they are actually looking for viability study. Viability study is the analysis of Time Recovery Index (TRI) also known as the Payback period or Risk Factor Index (RFI) of a project.

Generally, feasibility and viability appraisal is the professional advisory report on the possibility and profitability of an investment or project to the investor.

Below are the basic questions feasibility and viability study is yearning for answers;

  • Is the project profitable under the current economic and non-economic conditions?
  • What is the project completion time vis-à-vis remuneration and recovery time?
  • What is the project location and proximity to the economies of best users?
  • Are they challenges in population curve/growth/density that could limit or improve patronage and income recovery?
  • Do I need to go ahead with the project? ; Expand project capacity?
  • Am I using equity capital? Or
  •  Do I need funding? If yes, what sources are available and on what conditions?

We therefore, equipped to offer real estate advisory report on the possibility and profitability of an investment, analyzing investment overall performance and cash flow to an investor.