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What is a key component of a feasibility report?  A. Financial projections  B. Employee satisfaction  C. Product features  D. Market trends

Question

What is a key component of a feasibility report?

A. Financial projections
B. Employee satisfaction
C. Product features
D. Market trends

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Solution

To determine the key component of a feasibility report, it is essential to understand what a feasibility report generally includes.

  1. Definition of a Feasibility Report: A feasibility report assesses the practicality of a proposed project or system. It analyzes various aspects to determine its likelihood of success.

  2. Typical Components:

    • Financial Projections: Estimating the costs, revenues, and profitability.
    • Market Analysis: Understanding market trends and target demographics.
    • Operational Feasibility: Evaluating workforce capabilities and processes needed.
    • Technical Feasibility: Assessing the technology requirements and solutions.

Among the options offered:

  • A. Financial projections: This is crucial since it directly relates to the viability of funding and profitability.
  • B. Employee satisfaction: This is relevant but not typically a primary focus of a feasibility report.
  • C. Product features: This pertains to the specific offerings but does not encapsulate the feasibility as a whole.
  • D. Market trends: This provides context but is part of market analysis rather than a standalone component.

Conclusion

The best answer is A. Financial projections, as they are fundamental to evaluating the financial viability of the project within a feasibility report.

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