Feasibility Studies: Preparation, Analysis and Evaluation

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.

## Course Objectives

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.

## Course Outline

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