What is Economic Feasibility?

Economic feasibility means - how much technology and expertise needed will cost the organization. The system implementation will result in cost savings or not. Economic feasibility is usually the most stringent restriction imposed on the system, because the organization can not allocate an unlimited amount of funds to the project.

The maximum available amount of funds usually restricts the scope of the project. Therefore, after deciding that the system is technically feasible, the system team makes an, estimate is bound to be in accurate.

A range of 50 per cent over the estimated cost figure is acceptable. If the upper limit of the estimated cost i.e., the estimated amount +50 per cent falls within the allocated budget the system is declared as economically feasible. The economic feasibility issue of cost benefits analysis of the system.