The entrepreneur must have a large-range
outlook on the intended business investment examine the alternative
uses of capital and account for inflation in future value of cash flow,
forecast future events and financials requirement and carry sensitivity
and risk analysis.
This study provides an analysis and
illustration of the principles of feasibility and viability appraisals
and highlights the essence of the subject matter. It also brings into
snap focus the accountants essential contributions, which have hitherto
tended to be lost in wide diffusion.
In view of the objective of the study
already stated, the literature review examines the view of various words
on the subject matter. It emphasizes on the meaning, importance and
components of feasibility and viability studies historical perspective
and the role of accountant thereof.
Research design and methodology details
the method used in carrying out the research for the project. It
specifies the sources of data, target population, sampling method and
also describes the research instruments and method of administration any
analysis of data.
Data presentation and analysis details the finding of the researcher regarding the project and examine then.
Finally A useful constructive
suggestions were put down so that any interested party may be well
guided. The researcher went ahead to give suggestions for further study
to showcase the problem of young researchers n topic selection. A
specimen of questionnaire was attached in order to enable an interested
party see at a glance the data used in building the work.
One of the
major constraints to effective project implementation especially in
developing economics is lack of adequate knowledge of how to package it
to appeal to the public. Project packaging constitutes a vital aspect of
investment decision process. Project packaging should help to decide
the practicability and worthiness to embark upon a project.
A project feasibility study
sometimes referred to as project study is an investigation, which
ascertains the viability and worth wideness of an exiting, or a new
undertaking. It is often used for securing financial assistance for
project execution. It guides promoters, business managers, financial
executives and other interested groups in determining the actions they
must take on a project in order to bring about its successful execution.
For a feasibility study to be
practicable, it must involve problem identification and definition. The
collection of data collected, which are relevant to all aspect of the
project, the analysis of data so collected and formulation of
recommendations based on the analysis.
An entrepreneur who is
embarking on a project must have a long-range outlook on the intended
business investment examine the alternative uses of capital and account
for inflation in future values of cash flows, and forecast future events
and financial requirement and carry out sensitive and risk analysis.
These are highly sensitive areas that require expertise skills.
Project analysis was two
dimensions. Firstly, the assessment of the probability of its successful
implementation and also the appraisal of the contribution of the
project to the specific objectives. These two aspects are referred to as
the feasibility and viability appraisal.
This study provides an
analysis and illustrations of the principle of feasibility and viability
of a project and highlights the essence of the subject matter. It also
relates the accountant’s contribution in order to make a project
1.2 OVERVIEW OF THE STUDY
The study is divided into two
sections, Section one which comprises chapters 1,2 and 3. These
chapters’ deals mainly on the scope and method of the research project
specifically, chapter two will deal mainly on an evaluation of the
theoretical concepts of investment appraisal. Hence the contributions of
various authors which relates to the concept of feasibility and
viability studies as well as the writers definitions of the role the
accountant play in making a project feasible and viable hence
The second section comprises
chapter 4 and 5 and focuses on a practical illustration of feasibility
and viability case stuffy of a household cassava- starch production.
1.3 STATEMENT OF THE PROBLEM
is affected by factors outside and within itself. Often, success or
failure depends more in the general business environment or climate in
which it operates and on the general reputation on its sponsors. The
problem of a successful industrialization in the developing countries is
lack of knowledge of how to formulate a project in such a way that it’s
potential and profitability either from the public or private viewpoint
can be estimated on a firms basis- Ezenagu (1991:14).
The project executors should
be conversant with both projects objectives and the decisions to be
taken to realize these objectives. They should be conversant with the
available resources needed for the project. In the course of the project
execution, some factors can effect the programme of activities. The
project implementation should be alert to detect factors intervention
signal that could multiage against the project and remedial actions
taken to ensure that the objective of the project are Met Orjil (2001:
According to Uwakaneme
(1980:1) this problem can be pinned on the tendency in Nigeria
entrepreneurs to neglect thinking through their plans carefully in the
beginning (in form of feasibility ands viability study, before commuting
scarce funds and energy apart from insufficient starting capital and
shortage of skilled technical and managerial manpower.
Available evidence indicates
that even trusted accountants, consultants prepare project reports and
projections, to suit their clients, requirements and earn four fees;
insensitive of the credibility of such projections. Consequently, the
proposals get rejected by the bankers, or share the facilities granted,
the business proprietors soon fund themselves in trouble when they are
faced with real life situations as distinct from the picture painted by
the initial projections by the accountants.
1.4 OBJECTIVES OF THE STUDY
The objective of the study emanates from the above-identified problems.
Therefore the major objectives of this study are as follows:
- To appraise or bring to view the feasibility and viability studies on order to successfully carryout a project ideas.
- To enlighten the role the
accountants play in feasibility and viability appraisal in formulation
and development of a business.
- Using a cassava starch
illustration of case study to illustrate the principle practice and
application of feasibility and viability studies.
- To appraise and determine the potentials of feasibility studies in a small-scale enterprise.
- To determine the main
techniques of appraisal commonly adopted for analytical purposes and to
determine the reasonableness of such in practical situation using
cassava starch small-scale business as a project study
1.5 THE RESEARCH QUESTIONS
1. Does accountants really have any significant role in project? Feasibility and viability appraisal?
2. What are the role of
professional accountant in preparation of a credible feasibility and
viability appraisal in order to avert project failures if any?
3. What significant are attached to a feasibility and viability appraisal?
4. What are the underlying principles of this study?
5. How would a small business enterprise be evaluated viable by an accountant example Cassava starch project.
6. What advice can these accountants give to the potential investor in the cassava-starch production project.
1.7 SIGNIFICANT OF THE STUDY
The principal targets of this
study are students in Accountancy departments in the Tertiary
Institution and other accountants in Federal Ministries.
There has not been any book
written on the role the accountants play in feasibility and viability
appraisal of a project. But this project will serve as one for the
benefit of those students who graduate without immediate employment and
it will equally benefit other accountants in their efforts to boost
The project will also serve as
a guide to young entrepreneurs and indeed the management of small and
medium scale enterprises to appreciate the necessary and necessity of
feasibility and viability appraisal which will translate to the survival
of their business which will return boost the Gross domestic product of
the economy when the business succeed. The growth of a feasible and
viable project will also bring about industrialization.
1.8 SCOPE AND LIMITATION OF THE STUDY
This study does not extend as
much as examining the success or failures of accountants to carryout
their role in making a project feasible and viable but it merely
examines their role in feasibility and viability appraisal of a
cassava-starch project of a small enterprise. Hence, no hypothesis can
The study will base mainly in
Enugu Metropolis although some data will be collected from Awka Town.
Therefore, the case study may now be regarded as a “Fact accompli”
report for investment purposes as only a limited investment has been
conducted and a number of assumptions made.
SCOPE OF THE STUDY
This study was to determine
the role of Accountant in project feasibility and viability appraisal of
a cassava starch project in Awgu. This study focused attention on
feasibility and viability appraisal hence it will be based on the
accountant in Federal pay office Enugu- since most of them have wealth
of experience in Accounting.
1.6 RESEARCH HYPOTHESIS
1. Ho Null Hypothesis: There are no underlying principles and significance of feasibility and viability appraisal
H1 Alternative Hypothesis: There are underlying principles and significance of feasibility and viability appraisal.
2. Ho feasibility and viability appraisals created no impact on the survival and failure of no projects
H1 feasibility and viability appraisals created impact on the survival and failure of new projects.
3. Ho Professional
Accountants have no role to plat in the preparation of a credible
feasibility and viability appraisal in order to help avert project
Accountant have much role to play in the preparation of a credible
feasibility and viability appraisal in order to help avert project
4. Ho A small-scale
cassava starch project cannot be evaluated by an accountant in order to
properly advise a potential investor on such project.
H1 A small-scale
cassava starch project can be evaluated by an accountant in order to
properly advise potential investor on such project.