Viability Analyses Concept
Viability Analyses consists in a technical study of financial nature that seeks to determinate the possibilities of economical and financial success of a certain project, being an investment project, the release of a new product, the entry on a new market or an organizational restructuring project. Through this study are made predictions of the profits and the costs generated by the project and calculated several viability indicators, based on the evaluations of cash flow generated, among which the Profitability Internal Tax, the Net Current Value and the Term of Investment Recovery or Payback Period. To evaluate the strength of the project’s results can also be made a sensibility analysis.
Viability analysis are needed to support in the decision making of managers (its conclusions can determine the execution or not of a certain investment, for example), but can also be requested by the different financiers of the company and the project such as shareholders, banks, institutions who manage support programs, among others.