A feasibility study is the first document to be developed using the information provided by the client (type of products, forecast and local costs) and using Telstar’s experience, where the costs of investment and operation are calculated based on a preliminary design, evaluating what the return of the investment (ROI) is.
The calculation of the investment requires a preliminary capacity study in order to identify the number of required lines and building levels which defines the initial surface needs. By using historical ratios based on our experience, a calculation of the necessary investment can be confirmed. This is what is known as CAPEX.
When talking about operational costs (OPEX) an initial structure is determined for the company’s operation, calculating the associated costs. Product costs are also calculated, based on historical ratios.
It provides a clear picture of whether to go ahead or not for such an investment and it provides to the investor a rough approach of cash needs and total investment amount. It is an essential decision tool.
Telstar Value Services
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