A feasibility study is an analytical document that, before an investment is approved, demonstrates that the project is technically achievable, financially sustainable and socially beneficial. For larger projects financed from EU funds, it tends to be a mandatory annex to the application for a non-repayable financial contribution, and its quality directly affects the outcome of the expert evaluation. The standard structure covers the definition of the problem and objectives, an analysis of demand and target groups, an assessment of several alternative solutions including the zero option (what happens if nothing is done), a technical description, a timetable, a budget, a risk analysis, and an economic evaluation. The comparison of alternatives is precisely the core of the document – the evaluator assesses whether the chosen solution offers the best ratio of benefits to costs. For IT projects and large investments, a value-for-money assessment also enters the process. Nor does it pay to underestimate the assumption of operating costs after the project ends, which is verified as part of sustainability.
See also: Cost-Benefit Analysis (CBA), Project budget, Project sustainability.
