What is the focus of an economic feasibility study?

An economic feasibility study primarily focuses on analyzing the costs versus benefits of a proposed project. This involves estimating the financial implications of implementing the project, including both direct costs, such as expenditures on equipment and resources, and indirect costs, like potential maintenance or operational expenses.

The study assesses whether the expected benefits of the project, which could encompass increased revenue, improved efficiency, or enhanced customer satisfaction, justify the costs involved. This thorough evaluation helps stakeholders determine if the project is worth pursuing from an economic standpoint, ensuring that resources are allocated effectively and that the investment will yield a satisfactory return.

While other aspects such as time, technical resources, and regulatory compliance are important in the overall assessment of a project's viability, they do not directly relate to the financial justification that is the essence of economic feasibility. Hence, the focus is specifically on the balance between cost and benefits.