Feasibility Studies - Preparation, Analysis and Evaluation

Introduction

This program is designed for:

Anyone involved in preparing, writing and analyzing feasibility studies.

Objectives

• Prepare and analyze feasibility studies.
• Identify crucial arguments and effectively explore the various assumptions.
• Present ideas in a simple, effective, convincing and objective manner.
• Build the feasibility study financial model using Microsoft Excel.
• Perform scenario and sensitivity analysis to improve plans and projections.
• Analyze someone else’s feasibility study and find its merits and shortcomings.

Content

Introduction and Definitions

• Feasibility Study Definitions
• Feasibility Study Objectives
• Feasibility Study versus Business Plan
• Feasibility Study Cycle
• Feasibility Study Preparation Steps

Feasibility Study Elements

• Feasibility Study Report Elements
• Executive Summary
• Feasibility Study Outline
• Market Feasibility
  • Market Research and Analysis
  • Market Research Data Types
  • Sales Projections Analysis
• Technical Feasibility
  • Critical Technical Questions
  • Supply Feasibility
  • Operational Feasibility
• Financial Feasibility
  • Project Costs
  • Indirect Costs
  • Ongoing Costs

Feasibility Study Financial Model Using Microsoft Excel

• Building the Feasibility Study Financial Model
• Weighted Average Cost of Capital (WACC)
• Cost of Equity Using the Capital Asset Pricing Model (CAPM)
• Unlevered Free Cash Flow (UFCF)
• Terminal Value of the Project
• Preparing Sensitivity Tables
• Creating Different Scenario Analysis

Feasibility Study Appraisal and Analysis

• Financial Analysis Parameters
  • Liquidity Ratios
  • Operating Ratios
  • Financial Leverage Ratios
  • Security Ratios
  • Profitability Ratios
• Investment Appraisal Analysis
  • Quantity and Sales Breakeven Points
  • Payback Period
  • Net Present Value (NPV)
  • Internal Rate of Return (IRR)
  • Profitability Index

Feasibility Study Evaluation and Implementation

• Internal Recommendations and Conclusions
• Evaluating Feasibility Studies
• Common Mistakes in Using the Feasibility Study Results
• Implementing the Proposals