The following is a sample outline used for a typical feasibility study.

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