"Economic feasibility is about understanding whether the project is less costly." True or false?

The statement "Economic feasibility is about understanding whether the project is less costly" is somewhat misleading and should be considered false.

Explanation:

1. Definition of Economic Feasibility: Economic feasibility examines whether the expected benefits of a project justify its costs. It encompasses a broader scope than just cost comparison; it looks at the overall financial viability of a project.

2. Cost-Benefit Analysis: A crucial part of economic feasibility is the cost-benefit analysis, which evaluates both the costs associated with the project (capital, operational, etc.) and the potential benefits (revenue, savings, etc.). It’s not just about being "less costly" but understanding if the benefits outweigh the costs.

3. Long-term Implications: Projects may involve initial higher costs but provide greater long-term benefits. Economic feasibility takes into account both short-term and long-term perspectives.

In summary, economic feasibility is not solely focused on minimizing costs but rather on evaluating the overall financial implications, ensuring that the project's benefits exceed its costs.