Unit 1 Reading A 阅读理解题 The Costs in a Feasibility Study P1 A feasibility study is the financial analysis of all the costs and income revenue that indicates whether a project will produce a profit. A feasibility study goes through several stages. The first stage uses approximated figures available at the time but further stages will require cost figures that have been confirmed and finalized. P2 When preparing a feasibility study for a new construction project, the first point is likely to be the cost and availability of the land on which you propose to build. The tender, that is, the offer you make for the land, will also have a number of associated costs for items such as legal charges, stamp duty and utility charges, including transportation costs. There may be many other costs that will have to be considered. P3 A further estimate will be required of the fees and associated costs for the building design. Bids from a number of architects will have been collected and the most cost-effective design selected. All these estimated costs must be added to the first stage of the feasibility report. P4 The next major aspect to consider will be the construction costs. For example, if your project comprises ten town homes, you need to calculate how much it will cost for building materials, wages and insurance. Contractors will be asked for estimates and the most reliable and cost effective design selected, but it is wise, at this stage, to include an extra percentage, say 10%, for non-specified costs. P5 This type of feasibility study will also include the likely estimated marketing costs, such as advertising, printing of brochures and sales commissions. P6 Finally, depending on what percentage of the total cost will have to be borrowed, the cost of borrowing must be included. In other words, the total amount of interest on the loans will have to be paid, over the period until the buildings are sold.