What Is Economic Feasibility?

By Staff WriterLast Updated Apr 3, 2020 6:50:01 AM ET

Economic feasibility is the cost and logistical outlook for a business project or endeavor. Prior to embarking on a new venture, most businesses conduct an economic feasibility study, which is a study that analyzes data to determine whether the cost of the prospective new venture will ultimately be profitable to the company. Economic feasibility is sometimes determined within an organization, while other times companies hire an external company that specializes in conducting economic feasibility studies for them.