What factors are key to a capital project's financial viability?

The key to a capital project's financial viability lies in its cost, revenue generation potential, funding sources, and alignment with strategic objectives.

Cost is the fundamental aspect that determines the overall budget and financial feasibility of the project. Properly estimating and managing costs ensures that the project can be completed without overspending or needing additional funding down the line.

Revenue generation is crucial for projects that need to sustain themselves financially. This includes analyzing how the project will generate income, whether through direct user fees, increased tax revenues, or other means. Understanding the revenue potential helps in evaluating whether the project can support its operational expenses and provide a return on investment.

Funding sources play a significant role in a project's financial viability. Identifying where the capital will come from—be it government grants, loans, or public-private partnerships—affects the project's ability to move forward. A robust funding strategy can mitigate risks and ensure that financial resources are available when needed.

Lastly, strategic alignment ensures that the project supports the broader goals and priorities of an organization or community. A project that aligns with strategic objectives not only enhances its chances for funding but also ensures community or stakeholder support, which can be pivotal for long-term success.

While other options may mention important aspects of project planning and execution,