When launching a new R&D project, you may want to ask for a feasibility study after having chosen the physical characteristics of your project. A feasibility study costs $100,000 and takes one period to complete. Information is provided in the next period within the R&D section of the company results; it includes:
the minimum base cost at which the product can realistically be manufactured
the budget required to guarantee its completion at the currently requested base cost.
The main advantages of feasibility studies are their low cost and the accuracy of the information provided. Their main drawback is the time it takes to get this information: a full period.