As a planning document, the feasibility study serves as a risk disclosure summary within the due diligence process. It should follow the market study. Clearly, disclosure has to be based on market assumptions, so a feasibility study cannot precede a test of the market itself. In the market study, the big question is, does it make sense in this market to proceed, given site attributes, supply and demand, and competitive realities? In comparison, the feasibility study should ask the questions, Can we afford to build the project as originally conceived, or do we need to examine costs with market and financial attributes in mind?
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