63: Financial feasibility analysis can be done by comparing with the estimated sales figure
Balance sheet
P&L.
Cash flow statement
Beak-even point
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Introduction:
Financial feasibility focuses on the study's financial components. It evaluates the economic feasibility of a proposed enterprise by analysing launch costs, operational expenses, cash flow, and forecasting future performance.
Explanation:
A financial analysis can aid in this evaluation. Consider the following elements:
- Expenses for the Company
- Revenues.
- AssetsLiabilities
- Flow of funds (money in, and money out).
To do a financial feasibility study, the estimated sales amount is compared to the break-even point.
A break-even analysis is a financial tool that helps a firm determine when the company, or a new service or product, will be profitable.
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