Holistic Feasibility Study for Different Investment Alternatives

A feasibility study can be characterized as an assessment of potential effect of a proposed project. It is directed to help towards figuring out whether to establish a particular project. A feasibility study's main goal is to assess the economic viability of the proposed business. In this paper, the authors present a study that is done for an investor who wants to choose the most profitable alternative among four mutually exclusive alternatives. The alternatives include buying land and selling it after nine years, constructing an office building, constructing a shopping center, or constructing a multistory parking building. The office, shopping center, and parking buildings have a built-up area of 50,000 sf. The designated land area is located in Montreal downtown area, Canada. After performing the economic analysis, the shopping center turns out to be the most feasible. Finally, some supplementary analysis is applied to specify the most sensitive attribute. It is found that changing the minimum acceptance rate of return would have the most impact on the calculated results.