--- title: "Feasibility study and its types" subject: "Software Engineering" chapter: 1 key: "semester_5/software_engineering:feasibility-study" source: https://www.bctengineer.com/q/semester_5/software_engineering/feasibility-study site: BCT Engineering --- # Feasibility study and its types Software Engineering · Chapter 1: Software Process and requirements - Asked in: 2069 Chaitra, 7 marks - Video: [06 - System Analysis and Design | What is Feasibility Study | Types of Feasibility Study](https://www.youtube.com/watch?v=bgOKpmtff3k) — Touseef Jamal - Answer checked by Claude Sonnet 5.5 on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_5/software_engineering/feasibility-study - Whole chapter: https://www.bctengineer.com/md/semester_5/software_engineering/chapter-1 ## Question What is the purpose of going through feasibility study? List out the various types of feasibility to be studied and explain any two types in detail. ## Short answer A feasibility study decides whether a proposed system is worth building before large investment. Types include technical, economic, legal, operational, and schedule feasibility. Technical checks available technology and skills; economic compares costs and benefits using payback period and ROI. ## Answer A **feasibility study** is a short, focused study done at the start of a project to decide whether the proposed system is **worth building**: whether it can be developed with available technology, within budget and time, and whether it will be useful to the organisation. #### Purpose of a feasibility study - To decide **whether to go ahead** with the project, change it or drop it, before large investments are made. - To check that the system **contributes to the overall objectives** of the organisation. - To check that it **can be implemented using current technology**, within the given budget and schedule. - To check that it **can be integrated** with existing systems. - To compare **alternative solutions** and recommend the best one. - To identify major **risks and constraints** early. - The output is a **feasibility report** that management uses to make the go/no-go decision. #### Types of feasibility 1. **Technical feasibility** 2. **Economic feasibility** (cost–benefit) 3. **Operational feasibility** 4. **Schedule feasibility** 5. **Legal feasibility** (Remembered together as **TELOS**: Technical, Economic, Legal, Operational, Schedule.) Some texts also include social/behavioural and resource feasibility. #### Technical feasibility Technical feasibility asks: **can the system be built with the available technology and expertise?** It examines: - Whether the required hardware, software, network and tools are available or can be acquired. - Whether the technology is mature, or new and risky. - Whether the development team has the needed technical skills. - Whether the system can meet the required performance, capacity, security and reliability. - Whether it can be integrated with existing systems and databases. Example: for an online exam system for 5,000 students at the same time, the study checks whether the college's server and internet bandwidth can handle the load, or whether cloud hosting is needed, and whether the team knows the chosen web framework. #### Economic feasibility Economic feasibility (**cost–benefit analysis**) asks: **will the benefits be greater than the costs?** - **Costs**: development (staff, hardware, software licences), installation, training, and yearly operating and maintenance costs. - **Benefits**: tangible (reduced staff cost, less paper, faster processing, more sales) and intangible (better decisions, customer satisfaction, image). - Techniques: **payback period**, **return on investment (ROI)**, **net present value (NPV)** and break-even analysis. Example: a computerised billing system costs NPR 20 lakh to develop. It saves NPR 8 lakh per year, and running it costs NPR 2 lakh per year, so the net benefit is NPR 6 lakh per year. - Payback period = 20 / 6 = **3.33 years** (about 3 years 4 months). - Over 5 years: net benefit = 5 × 6 = 30 lakh; ROI = (30 − 20) / 20 = **50%**. Since the system pays back within its expected life, it is economically feasible. (Briefly: **operational** feasibility checks whether users will accept and use the system and whether it fits business processes; **schedule** feasibility checks whether it can be completed by the required date; **legal** feasibility checks conflicts with laws, contracts, licences and privacy rules.) ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. What is the main purpose of a feasibility study? A. To write the code B. To decide whether the proposed system is worth building before large investments C. To test the finished system D. To train users Answer: B. It supports a go/no-go decision through a feasibility report. (Key point: Purpose of feasibility) 2. What does TELOS stand for? A. Technical, Economic, Legal, Operational, Schedule B. Test, Estimate, Learn, Operate, Support C. Time, Effort, Labour, Output, Scope D. Technical, Ethical, Local, Operational, Social Answer: A. TELOS lists the five feasibility types. (Key point: TELOS) 3. A system costs NPR 20 lakh and gives a net benefit of NPR 6 lakh per year. What is the payback period? A. 2.5 years B. 3.33 years C. 4 years D. 5 years Answer: B. 20 / 6 = 3.33 years, about 3 years 4 months. (Key point: Payback period) 4. Using the same figures, what is the 5-year ROI? A. 50% B. 30% C. 150% D. 25% Answer: A. Net benefit over 5 years is 30 lakh; ROI = (30 - 20) / 20 = 50%. (Key point: ROI) 5. What does technical feasibility ask? A. Will benefits exceed costs? B. Can the system be built with the available technology and expertise? C. Will users accept it? D. Does it break any law? Answer: B. Technical feasibility examines hardware, software, skills, performance and integration; benefits vs costs is economic. (Key point: Technical feasibility) ## Related in Software Engineering - [Short note: feasibility study](https://www.bctengineer.com/question.md?key=semester_5%2Fsoftware_engineering%3Afeasibility-note) — Software Engineering, chapter 1 - [Feasibility report and candidate matrix](https://www.bctengineer.com/question.md?key=semester_5%2Fsoftware_engineering%3Afeasibility-report) — Software Engineering, chapter 1 ## Related in other subjects - [Case study: plan, feasibility and ROI](https://www.bctengineer.com/question.md?key=semester_5%2Finstrumentation_ii%3Acs-2075chaitra) — Instrumentation II, chapter 10 - [Steps of a feasibility study (team leader)](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Afeasibility-study-steps-consultant) — Hydropower Engineering, chapter 2 - [PDLC and feasibility study](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Apdlc-feasibility-study) — ICT Project Management, chapter 1 - [Case study: feasibility, drawbacks, convincing](https://www.bctengineer.com/question.md?key=semester_5%2Finstrumentation_ii%3Acs-2072kartik-feasibility) — Instrumentation II, chapter 10