What is the primary purpose of a feasibility study?

The primary purpose of a feasibility study is to assess the practicality and viability of a proposed project. This involves evaluating various aspects such as technical, economic, legal, operational, and scheduling factors to determine whether the project can be successfully implemented. The feasibility study provides decision-makers with critical information regarding potential challenges, required resources, and the likelihood of achieving the desired outcomes. It essentially serves as a roadmap that helps stakeholders understand if pursuing the project is worth the investment of time and resources, thereby facilitating informed decision-making.

While analyzing existing revenue sources, collecting market data, and conducting financial forecasts are relevant to project planning and development, they are not the central focus of a feasibility study. Those elements may be components of the overall evaluation but do not encompass the comprehensive assessment of a project's viability that a feasibility study aims to achieve.