Importance of Feasibility Models in Capital Allocation

Capital allocation decisions determine where and how funds are invested. Feasibility models help developers allocate capital efficiently by comparing expected returns across multiple projects. By analyzing cash flow timing, risk exposure, and profitability, feasibility analysis ensures funds are directed toward projects that meet return targets. This structured evaluation reduces emotional decision-making and prevents capital being locked into low-performing developments. Over time, disciplined capital allocation supported by feasibility modeling improves portfolio performance and financial stability.