FEASIBILITY STUDIES: PREPARATION AND ANALYSIS

Available Dates & Locations

This course is offered exclusively as In-House or Virtual, with no public sessions currently available – please contact us for inquiries.

COURSE OVERVIEW

If you fail to plan; then plan to fail. The preparation of a feasibility study requires meticulous planning skills as well as the competencies of intuition and emotional control. This course aims at providing participants with the ability to model their feasibility study using Excel and address market, technical and ﬁnancial aspects. Also, participants will be enabled to appraise diﬀerent investment types such as industrial and service projects.

COURSE OBJECTIVES

By completely attending this course, participants will be able to:

List objectives of their feasibility study
Outline fundamental elements of their feasibility study
Model their feasibility study ﬁnancials using Microsoft Excel
Appraise their projects viability using diﬀerent investment methods
Summarize their feasibility study recommendations and conclusions

NOTE: This course includes:

Hands-on training using Microsoft Excel for building feasibility study ﬁnancial models.
Templates and models related to feasibility studies – soft copy.

TARGET COMPETENCIES

Market analysis.
Risk Management
Cost-Benefit Analysis
Data Collecting and Processing
Financial modelling
Investment Appraisal methods & techniques
Environmental and Social Impact Assessment
Report & recommendation writing skills

Individuals involved in preparing and analyzing feasibility studies, project managers, project sponsors, functional managers, senior management, and executives. This course is worth 30 PDUs.

A variety of methodologies will be used, including building feasibility models, discussions, individual and group exercises, practical case studies, and hands-on training using Excel.

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.