What is the purpose of a feasibility study in project management?

A feasibility study is essential in project management as it serves the primary purpose of determining the practicality and potential for success of a proposed project. This involves analyzing various aspects, including technical, economic, legal, operational, and scheduling factors, to understand whether the project can be successfully completed and should proceed. The study helps stakeholders make informed decisions based on the likelihood of achieving the project's objectives, averting unnecessary investment in unviable projects.

While other options touch on important elements of project management, they do not encapsulate the core aim of a feasibility study. For instance, evaluating project milestones focuses on measuring progress at various stages of a project rather than assessing overall viability. Similarly, assessing project risks is crucial, but it is a component of the risk management process, not the primary goal of a feasibility study. Developing a project plan comes after a feasibility study has established that the project is worth pursuing. In summary, the feasibility study is the foundation for making informed project decisions, setting the stage for successful planning and implementation.