ITPEC FE Morning October 2021 Question 61

A feasibility study evaluates whether a proposed system is worth pursuing. There are four standard types:

• •Economic feasibility — checks if the system's lifetime benefits exceed its lifetime costs (cost-benefit analysis, ROI, payback period).
• •Operational feasibility — checks if the system will actually be used effectively by the organization and its people.
• •Scheduling feasibility — checks if the project can be completed within the required timeframe.
• •Technical feasibility — checks if the necessary technology, hardware, and expertise are available.

The question explicitly asks about "lifetime benefits greater than lifetime costs," which is the definition of economic feasibility.

Why not others:
- (b) Operational feasibility evaluates whether the system fits the organization's workflows and users will adopt it — not about costs vs. benefits.
- (c) Scheduling feasibility evaluates whether deadlines and time constraints can be met — nothing to do with monetary comparison.
- (d) Technical feasibility evaluates whether the required technology and skills exist — not a financial evaluation.

Key rule: "Benefits vs. costs" = Economic feasibility. Remember: Economic = Earnings vs. Expenses.

AI-generated — may contain errors