ECONOMIC JUSTIFICATION STUDY / FEASIBILITY STUDY

The economic justification study / feasibility study are in fact studies that are very similar in content and purpose to the Investment Study, and are also based on realistic indicators and assessments of the feasibility of investing in a project. However, there are some important differences and the type of study depends on what it will be used for (who it is intended for), what is its ultimate goal and at what stage of the project is being prepared.

The feasibility study and other forms of study often point to bottlenecks and help make decisions about how to deal with a particular business idea. For example, they can answer questions about whether to continue doing business independently or enter into a partnership with someone; whether to sell or rent a particular business or its segment, whether to buy or rent office space or any other property and similar issues.

The economic feasibility study is very often prepared for the purpose of applying for tenders for concessions, issued by public administration bodies (for example on maritime domain or similar). Then, except for the concession grantor, which requires that other economic documentation be accompanied by a feasibility study, such a study is very important for the bidder because his goal is to calculate the optimal amount of compensation to be offered to the concession grantor, which often consists of a permanent and the variable part.The Feasibility Study, Feasibility Study and Feasibility Study are based on the following principles: the analysis is conducted for all years of the project life; all values ​​are expressed in the same currency; the analysis is carried out on the basis of adjusted prices (the average inflation rate is taken into account); the economic life of the project is determined for the purposes of evaluation; all receipts and expenditures take the form of money; the reproduction cycle is completed within one year and the calculations of the investor's operations are made on the basis of the elements of calculations of existing and future revenues, and the calculated operating costs.

We have extensive experience in the preparation of these studies and we have had the opportunity to successfully participate in numerous procedures for obtaining concessions (most often on maritime assets). Contact us with complete confidence.

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