The overall aim of this course is to provide participants with competencies required to prepare, analyze and evaluate feasibility studies. The course involves building a feasibility study financial model using hands-on training on Microsoft Excel. The course also aims at enabling participants to appraise service and industrial investments using different capital budgeting techniques as well as analyzing the related financial parameters.

By the end of the program, participants will be able to:

• 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 a 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.

Anyone involved in preparing, writing and analyzing feasibility studies.

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

o   Market Research and Analysis

o   Market Research Data Types 

o   Sales Projections Analysis

·         Technical Feasibility

o   Critical Technical Questions

o   Supply Feasibility

o   Operational Feasibility

·         Financial Feasibility

o   Project Costs

o   Indirect Costs

o   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

o   Liquidity Ratios

o   Operating Ratios

o   Financial Leverage Ratios

o   Security Ratios

o   Profitability Ratios

·         Investment Appraisal Analysis

o   Quantity and Sales Breakeven Points

o   Payback Period

o   Net Present Value (NPV)

o   Internal Rate of Return (IRR)

o   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