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.