INTRODUCTION
- Feasibility study definition
- Myths about feasibility studies
- Objectives of feasibility study
- Differences between feasibility study and business plan
- Types of Feasibility Studies
FEASIBILITY STUDY FOUNDATIONS
- Marketing feasibility
- Market analysis
- Market research data
- Analysis of sales projections
- Projection of Revenues.
- Technical feasibility
- Capital expenditures (CAPEX)
- Operating expenses (OPEX)
- Operational feasibility
- Techniques of Cost estimation
- Cost Classification and Allocation
- Financial feasibility
- Profit & loss (income statement)
- Balance sheet (Financial Position Statement)
- Cash flow statement
- Risk Assessment
- Legal, Environmental and Social Impact
BUILDING FINANCIAL MODEL USING MICROSOFT EXCEL
- Structuring the financial model
- Calculating weighted average cost of capital (WACC)
- Figuring cost of equity using capital asset pricing model (CAPM)
- Preparing unlevered free cash flow (UFCF)
- Analyzing terminal value of the project
- Breakeven and CVP analysis
- Conducting sensitivity analysis
- Generating different scenarios
ECONOMIC ANALYSIS AND APPRAISAL
- Analysis of financial parameters
- Liquidity ratios
- Operating ratios
- Financial leverage ratios
- Security ratios
- Profitability ratios
- Appraisal of investment
- Quantity and sales breakeven points (BEB)
- Payback period method (PP)
- Net present value method (NPV)
- Internal rate of return method (IRR)
- Profitability index method (PI)
- Which method is preferable.
- Project selection and feasibility models
- Non-numeric models
- Numeric models
- Scoring models
RECOMMENDATIONS AND CONCLUSIONS
- Asking the critical questions
- Contents of conclusion section
- Report appearance
- Evaluating feasibility studies
- Common mistakes in using the results.
- Factors for revising the study.
- Report Writing and presentation skills.
