A feasibility study is a preliminary study which investigates the information needs of the prospective user and determines the resource requirements, costs, benefits, and feasibility of a proposed project are determined. A feasibility study is concerned with the first four phases of capital budgeting. It is an analysis of the ability to complete a project successfully, taking into account legal, economic, technological, scheduling, and other factors. It also helps to identify logistical problems, and nearly all business-related problems and their solutions.
Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats present in the environment, the resources required to carry through, and ultimately the prospects for success. It can be used in many ways but primarily focus on proposed business ventures. Project managers use feasibility studies to find out possible optimistic and unenthusiastic outcomes of a project before investing a significant amount of time and money into it.