How to read a feasibility study
A feasibility study tests whether a project earns more than it costs, allowing for the time value of money. The studies in this library use the standard measures below; each one is shown on the study card.
- CAPEX — capital expenditure: the one-off cost of land, buildings, machinery and set-up.
- OPEX — operating expenditure: the running cost per year, such as labour, energy, maintenance and insurance.
- NPV — net present value: all future cash flows discounted back to today, minus the investment. A positive NPV means the project earns more than the discount rate.
- IRR — internal rate of return: the discount rate at which the NPV is zero. It is compared with the cost of capital.
- WACC — weighted average cost of capital: the blended cost of the project's debt and equity, often used as the discount rate.
- Payback period — how many years the cash flows take to repay the investment. It ignores what happens afterwards, so it is used alongside NPV, not instead of it.
In formula form: NPV = Σ CFt ÷ (1 + r)t − initial investment, where CFt is the cash flow in year t and r is the discount rate.
Studies in this library (4)
| Ref. | Report | Sector | Edition |
|---|---|---|---|
| FIN-2026-01 | Feasibility Study: 15,000 MT Agricultural Cold-Chain & Pre-Cooling Hub Development | Agri-logistics | Q3 2026 |
| FIN-2026-04 | THE EXPORT ENGINE | Agri-logistics | Q3 2026 |
| FIN-2026-02 | STRUCTURED TRADE FINANCE BY LETTER OF CREDIT (LC) | Treasury & risk | Q3 2026 |
| FIN-2026-03 | EXPORT FINANCE AND EXPORT PAYMENT TERMS | Treasury & risk | Q3 2026 |
Open a report above to see its summary and full specification sheet.
What makes a feasibility study reliable
- Sensitivity analysis. How NPV and IRR move if prices, volumes or costs change by 10–20%. A project that fails under a small change is fragile.
- Currency risk. Revenue in dollars or euros and costs in local currency can move in opposite directions; see the currency converter and FX notes.
- Realistic ramp-up. New plants rarely run at full capacity in year one.
- Working capital. Stock, receivables and letters of credit tie up cash; exporters often use trade finance to fund it — see the trade finance institutions directory.
To test your own export numbers, try the exporter feasibility simulator and the landed cost estimator.
Frequently asked questions
What is a good IRR for a project?
An IRR is good if it is clearly above the project's cost of capital (WACC) after allowing for risk. There is no single number; riskier projects and markets need a higher return.
What is the difference between NPV and IRR?
NPV gives the value added in money at a chosen discount rate; IRR gives the rate of return as a percentage. When they disagree between projects, NPV is usually the better guide.
Why is the payback period not enough on its own?
It ignores the time value of money and any cash flows after the payback date, so a project with a quick payback can still destroy value.
What is WACC?
The weighted average cost of capital: the cost of debt (after tax) and the return equity investors expect, weighted by how much of each funds the project.
Are these studies investment advice?
No. They are illustrative models for planning and education; any investment decision needs independent professional advice and your own verified figures.