Introduction
This Course is designed for:
Any learner involved in preparing, writing and analysing feasibility studies in his company.
Objectives
setup and analyse feasibility studies.
Identify important theories and effectively explore the various assumptions.
Present thoughts in a simple, effective, clear and objective manner.
establish the feasibility study financial model using Microsoft Excel.
Run models and sensitivity analysis to improve plans and projections.
Analyse someone else’s feasibility study and find its advantages and shortcomings.
Course Outline:
Day 1
Introduction and Definitions
– Feasibility Study terminology.
– Feasibility Study Goals.
– Feasibility Study versus Business Plans.
– Feasibility Study Cycle.
– Feasibility Study Setup.
Day 2
Feasibility Study Elements
– Feasibility Study Report Elements.
– Executive highlights.
– Feasibility Study ideas.
– Market Feasibility.
– Market Research and Analysis.
– Market Research Data kinds.
– Sales Projections Analysis.
Technical Feasibility.
– Important Technical Questions.
– Supply Feasibility.
– Operational Feasibility.
Financial Feasibility.
– Project Fees.
– Indirect Fees.
– Ongoing Fees.
Day 3
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.
Day 4
Feasibility Study Analysis
Financial Analysis Parameters.
– Liquidity Ratios.
– Operating Ratios.
– Financial Leverage Ratios.
– Profitability Ratios.
Investment Appraisal Analysis.
– Payback Period
– Net Present Value (NPV).
– Internal Rate of Return (IRR).
– Profitability Index.
Day 5
Feasibility Study Evaluation and Implementation
– Internal Recommendations and Conclusions.
– Evaluating Feasibility Studies.
– Mistakes in Using the Feasibility Study outcome.
– Implementing the Proposals.
