A feasibility study is a detailed analysis of a company and its operations that is conducted in order to predict the results of a specific future course of action. Business owners may find it helpful to conduct a feasibility study whenever they anticipate making an important strategic decision. For example, a company might perform a feasibility study to evaluate a proposed change in location, the acquisition of another company, a purchase of major equipment or a new computer system, the introduction of a new product or service, or the hiring of additional employees.
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