Economic and financial feasibility
A new location, a machine or an expansion project ties up cash for years. A feasibility study shows, in advance, whether the investment pays off and how long it takes.
What we do
We project revenue, costs and investment over time and calculate the indicators that tell whether the project is worth it: net present value (NPV), internal rate of return (IRR) and payback. We also test what happens if sales come in below expectations.
What you get
- Cash flow projection for the investment, year by year.
- NPV, IRR and payback explained in plain language.
- Pessimistic, base and optimistic scenarios to decide with a safety margin.
Who it is for
Companies evaluating an expansion, a major purchase or a new business, and anyone who needs to present the study to a bank, investor or grant call.
How it works
- Assumptions: We agree with you on the project's assumptions: investment, timelines, expected sales, costs and financing.
- Projection: We build the projection of revenue, costs and cash year by year.
- Indicators and scenarios: We calculate NPV, IRR and payback and test pessimistic, base and optimistic scenarios.
- Presentation: We explain the results in plain language and, if needed, prepare a version for a bank, investor or grant call.
Based in Maceió, serving clients remotely
Farol is based in Maceió, Alagoas, Brazil, and serves companies across the country. The study can be done for projects in Maceió, in Alagoas or anywhere in Brazil. When the project depends on the local market, we combine the study with market research.
For innovation projects, the feasibility study also helps build proposals for innovation grants.
Frequently asked questions
What are NPV, IRR and payback?
NPV shows how much value the project generates today, already discounted for the time value of money. IRR is the project's rate of return. Payback is the time until the investment pays for itself. Together, the three tell you whether it is worth it and with how much margin.
Can the study be used to obtain financing?
Yes. Banks and funds usually ask for projections and indicators like these. We organize the material in the format they expect.
What if sales come in below expectations?
That is what scenarios are for. We show how far sales can fall before the project stops paying off, which helps you decide with a safety margin.