i

ABSTRACT
A feasibility study is an evaluation of a proposal designed to determine the
difficulty in carrying out a designed task. Generally, a feasibility study precedes
technical development and project implementation. In other words, a feasibility
study is an evaluation or analysis of the potential impact of a proposed project.
Study of new project feasibility is made by estimating the Market
Demand & Financial Estimates of the proposed project and their project risk is
analysed by Sensitivity Analysis and Break Even Analysis.
The capital investment is evaluated in two phases the first phase is the
calculation of PBP (payback period) NPV (Net Present Value), IRR (Internal Rate
of Return) Average Rate of return (ARR) and Benefit cost ratio can be analysed in
the first phase. The second phase focuses on the project risk analysis through
methods such as the Sensitivity Analysis, Break Even Analysis. The Loan
Amortisation Schedule is also computed to determine the Loan repayment for the
concern. From these methods the project feasibility and the risk involved can be
ascertained effectively.
The main study of the project is to find out the New Project Feasibility for
the organisation. The Sensitivity analysis & the Break even analysis can provide
valuable insights into a firms new project & the risks involved.
In this study, the conclusion is made by a valuable suggestion to the
company, by which they can improve the overall performance of the company
and I hope that the findings and suggestion given to the company will be
considered and implemented in a better spirit.

ii

LIST OF TABLES

iii

S.NO

TABLE
NO.

3.1.1

3.1.2

3.1.3

3.1.4

3.1.5

3.1.6

3.1.7

3.1.8

3.1.9

10

3.2.1

11

3.2.2

12

3.3.1

13

3.3.2

14

3.3.3

S.NO

TABLE
NO.

15

3.3.4

16

3.3.6

17

3.3.7

18

3.3.8

19

3.3.9

TABLE TITTLE
TABLE SHOWING DEMAND DETAILS OF
RENAULT NISSAN AUTOMOTIVE INDIA Pvt. Ltd.
TABLE SHOWING COMPUTATION OF DEMAND
FOR RENAULT NISSAN AUTOMOTIVE INDIA Pvt.
Ltd.
TABLE SHOWING COMPUTATION OF DEMAND
FOR RENAULT NISSAN - LO2B
TABLE SHOWING COMPUTATION OF DEMAND
FOR RENAULT NISSAN - JO2C
TABLE SHOWING DEMAND DETAILS OF
TOYOTA KIRLOSKAR
TABLE SHOWING COMPUTATION OF DEMAND
FOR TOYOTA KIRLOSKAR - 800L
TABLE SHOWING COMPUTATION OF DEMAND
FOR TOYOTA KIRLOSKAR - 692N
TABLE SHOWING COMPUTATION OF DEMAND
FOR TOYOTA KIRLOSKAR - 243L
TABLE SHOWING COMPUTATION OF DEMAND
FOR VISTEON
TABLE SHOWING ESTIMATED COST FOR THE
PROJECT.
TABLE SHOWING SOURCES OF FINANCE
TABLE SHOWING VALUES FOR COMPUTATION
OF PAY BACK PERIOD
TABLE SHOWING VALUES FOR COMPUTATION
OF NET PRESENT VALUE
TABLE SHOWING VALUES FOR COMPUTATION
OF INTERNAL RATE OF RETURN @ (12.5%)
TABLE TITTLE

TABLE SHOWING VALUES FOR

COMPUTATIONOF INTERNAL RATE OF RETURN
@ (13%)
TABLE SHOWING VALUES FOR COMPUTATION
OF BENEFIT COST RATIO
TABLE SHOWING COMPUTATION OF
SENSITIVITY ANALYSIS
TABLE SHOWING COMPUTATION OF BREAK
EVEN ANALYSIS
TABLE SHOWING COMPUTATION OF LOAN
AMORTISATION SCHEDULE.

PAGE
NO.
15
16
18
20
22
23
25
27
29
31
32
35
37
39

PAGE

40
42
44
47
48

NO.

iv

LIST OF CHARTS

S.NO

CHART NO.

3.1.2

3.1.3

3.1.4

3.1.6

3.1.7

3.1.8

3.1.9

CHART NAME
CHART SHOWING DEMAND FOR RENAULT NISSAN
AUTOMOTIVE INDIA Pvt. Ltd.
CHART SHOWING DEMAND FOR RENAULT NISSAN
LO2B
CHART SHOWING DEMAND FOR RENAULT NISSAN
JO2C
CHART SHOWING DEMAND FOR TOYOTA KIRLOSKAR
800L
CHART SHOWING DEMAND FOR TOYOTA KIRLOSKAR
692N
CHART SHOWING DEMAND FOR TOYOTA KIRLOSKAR
243L
CHART SHOWING DEMAND FOR VISTEON

PAGE NO.
17
19
21
24
26
28
30