A feasibility study is more than a forecast

A credible investment case connects market evidence, technical assumptions, financial performance and implementation risk. Forecasts should be tested, not simply presented.

EXECUTIVE TAKEAWAYS

Triangulate demand before projecting revenue.

Link operating assumptions to cash flow and financing.

Make downside scenarios and implementation constraints visible.

Connect the appraisal dimensions
Market feasibility examines customers, prices and competition. Technical assumptions establish what must be built or operated. Financial analysis tests the project’s cash flows, investment needs and financing. Economic analysis considers wider resource costs and benefits.

Test the assumptions that can change the decision
Build scenarios for demand, price, capacity utilisation, costs, timing and financing. Review break-even conditions and debt-service capacity where borrowing is proposed. Assumptions should be traceable to evidence or clearly identified as provisional.

Prepare a decision-ready case
A feasibility package can combine a study report, integrated financial model, risk register and implementation roadmap. A bankability assessment considers financing requirements and evidence gaps; it cannot guarantee lender approval, investment or financial returns.

Research-design guidance based on IDER’s supplied service framework; no empirical study or market forecast.

Institute of Development and Economic Research (2026). A feasibility study is more than a forecast. IDER Research Planning Guides.

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