ABSTRACT
	A feasibility study is defined as an assessment of all aspects of a project including technical, infrastructural, environmental, social, legislative and commercial factors, which is sufficiently detailed to support a decision on implementation.
	Feasibility study should clearly define: objective of the study, contents of a feasibility study, importance of a feasibility study.
	Study of project: preliminary investigation report, order of magnitude study, prefeasibility study, feasibility study, detailed project report.
Contents of the feasibility study: executive summary,  technical,  financial, environmental.
	Feasibility report is condensed in this part in few pages or small separate volume, reading of which gives an insight view of the project.
	Each project has an associated level of risk. For a proposed investment to increase the value of a firm's stock, it should have a higher expected rate of return than shareholders require for assuming that risk. Since investors demand higher potential returns from riskier project, the cost of capital depend on the venture's risk. Therefore, this must be quantified. The cost of capital also reflect interest payments on debt and the level of dividends and capital gains needed to satisfy shareholders. Given a proposed project's expected future cash flows, the risk level and the minimum rate of return required by the shareholders, the value of a potential investment can be calculated. Theoretically, his is accomplished by comparing the investment to others in the financial market. If the cost of a portfolio of securities with same expected cash flows and risk level is less than portfolio's value, the investment would be made. Practically, the present worth of the investment is calculated by estimating the present value of each of its expected future cash flows and then summing these present values. If the total, or net, present value of the investment's future cash flow exceeds its cost, investment in the project can be expected to increase the firm's value.
	Financial performance measures, there are two primary performance measures used with discounted cash flows: cash flow, net present value NPV, internal rate of return IRR, etc.