INTRODUCTION
A feasibility study is an analysis used in measuring the ability and likelihood to complete a project successfully including all relevant factors. It must account for factors that affect it such as economic, technological, legal and scheduling factors. Project managers use feasibility studies to determine potential positive and negative outcomes of a project before investing a considerable amount of time and money into it.
PROGRAM 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.
WHO SHOULD ATTEND?
- Project Managers
- Business Analysts
- Anyone involved in preparing, writing and analyzing feasibility studies
PROGRAM OUTLINE
- Introduction and Definitions
- Feasibility Study Definitions
- Feasibility Study Objectives
- Feasibility Study versus Business Plan
- Feasibility Study Cycle
- Feasibility Study Preparation Steps
- Financial Statements
- 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
- 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
- Preparing Sensitivity Tables
- Creating Different Scenario Analysis
- Feasibility Study Evaluation and Implementation
- Internal Recommendations and Conclusions
- Evaluating Feasibility Studies
- Common Mistakes in Using the Feasibility Study Results
- Implementing the Proposals
