Financial Study

It is important if the proposed project is financially feasible, meaning the project cost is afford by the board or the company.  Also, it involves the thorough coverage of all the monetary information.  It covers the detailed information on the total project cost, initial capital requirements, sources of financing, financial statements and financial analysis.

The profitability level of the project is also defined such as the net income after taxes to the total investment. The identification of sources of financing is an essential element of feasibility study including the currency, security, repayment period, interest, and other features.

In addition, the financial health of the business is also assessed in the financial statements as well as the analysis showing the income, cash flow and balance sheets.  Other information such as break-even outputs, sales and prices, amount of sales required to earn a certain amount of profit and the cash payback period are also provided.

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