Feasibility Study Outline Sample

Summary of the Important Findings and Recommendations:

Setting, Purpose and Description of Project
Summary of Market Potential and Source of Input Supply
Summary of Technical Features
Schedules of Net Benefits and Capital Requirements
Benefit-Cost Ratios and Internal Rate of Return
Summary of Benefits and Costs Associated with the Project
Proposed Financial Plan and Projected Cash Flows
Recommendations for Implementation

Description of the Project:

Nature of the Project (including technical processes, general size and location, kind of output, etc.)
The General Setting of the Project Location
Proposed Ownership, Structure and Management
Markets to be served and Existing Suppliers
Input Supplies and Competitive Users
Staffing Requirements and Sources

General Setting and Need for Project:

Physical, Economic, and Social Characteristics (members/Community) of the Project Area
Regional, National, and International Economic Relevance to Project
Relevant Governmental Policies and Programs
Description of the Problem Situation (which would be solved by the project)
Impact and Consequences on Members (and the Community if Needed)
Sampling Procedures and Survey Techniques Used to Support Project

Market Potential for Goods or Services, Markets Served (current and future):

Form and Quality of Product or Service, Markets Served and Channels Used
Projected Total Demand in Markets to be Served
Projected Competitive Supplies and Services
Sales Potential and Projected Sales Prices
Marketing Plan and Projected Marketing Costs

Raw Material Supply Potential and Procurement Plan:

Form and Quality of Materials Required and Potential Supply Sources
Projected Total Supply from Members and Non-members
Projected Competitive Demand
Procurement Potential and Projected Procurement Prices
Procurement Plant and Projected Procurement Costs
Form of Commitment of Raw Materials-Marketing Agreements, Etc

Supply of Labor and Other Key Inputs:

Form and Quality of Labor and Other Inputs Required
Projected Total Supply from Sources Planned
Projected Competitive Demand for Inputs
Acquisition Plan, Training Program and Projected Acquisition Costs

Technical Characteristics and Specifications:

General Design and Technical Requirements
Comparison of Design and Expected Performance with Existing Operations
Reasons for the Advantages of the Design Selected
Proposed Sources of Supply and Method of Acquisition
Proposed Procedures for Quality Control and Construction Performance
Estimated Costs, and Sources Upon Which Estimates Are Based

Development Schedule and Production Plan:

Sequence of Development and Construction; Critical Points in Sequence
Detailed Development and Construction Calendar
Procedures for Controlling Development Schedule
Production Start-up and Initial Performance (or Yields)
Schedule of Transition to Full Output, and Controls to Insure that Schedule will be met
Schedules of Input and Output Based on Development and Production Plans

Capital Requirements and Investment Schedule:

Estimated Capital Cost for Major Facilities and Equipment
Estimated Capital Cost for Marketing and Other related Facilities
Replacement Schedules for Equipment and Facilities
Estimated Working Capital Requirements
Schedule of Estimated Total Capital Investment

Sales Plan and Revenue Schedule:

Seasonal Patterns of Product Demand and Prices
Storage Program and Projected Monthly Sales Schedule
Projected Net Monthly Product Prices
Projected Revenue Schedule over the Project Planning Period
Pooling Arrangements

Projected Operating Costs and Net Revenue:

Raw Material Costs
Labor Costs
Costs for Other Inputs
Management and Related Costs
Repair and Maintenance Costs
Costs for Research and Development, Overhead and Other Service Functions
Combined Annual Operating Costs
Projected Net Revenue over the Planning Period

Schedule of Net Benefits - Partial Budget:

Schedule of Added Net Income From Project
Schedule of Net Revenue Replaced by Project (if a Renovation Project)
Schedule of Combined Total Net Benefits from Project

Economic Feasibility of Project:

Present Value of Investment and Net Benefits Schedules at Alternative Discount Rates
Benefit-Cost Ratios and Internal Rate of Return for Project
Sources and Schedule of Benefits Associated with the Project
Sources and Schedule of Costs Associated with the Project
Present Value of the Combined Schedules of Associated Benefits and Costs
Project Potential in Relation to the Opportunity Cost of Capital, and Summary of Economic Feasibility
Sensitivity Tests-What if Prices and Costs Changed by Various Amounts
Other Financial Ratios as Needed by Project

Financial Plan for Project:

Proposed Equity Investment by Source of Funds
Proposed Sources, Schedule and Terms of Loans for Meeting Balance of Capital Requirements
Projected Cash Flow by Sector under Proposed Financing Plan
Projected Schedules of Depreciation, Interest and Taxes
Pro forma Balance Sheets and Operating Statements (3 years)
Pooling Arrangements
Pro forma Source and Application of Funds
Summary of Financial Plan and Recommendation for Implementation
Impacts on Members: Impact on the Cooperative

Appendices and Notes:

Resume or Credentials of Person or Company Who Completed the Study
List Key Assumptions and Validations for Their Use.
List Footnoted Sources for the Document