Preparing, Evaluating and Analyzing Economic Feasibility Studies

A well-developed feasibility study is an essential foundation to allow project analysis and design activities to begin in a focused manner. It either refines a business case by examining a range of possible options and potential issues or forms a basis for developing one. Feasibility studies address issues that could affect the success of a potential project and evaluate the advantages and disadvantages of each option so that they can be classified. The final output of the study is a clear summary report that presents the proposed project. Capital and analysis of financial indicators associated with those operations.

 

  • Develop their abilities and applied skills to prepare feasibility studies for investment projects, replacement, renovation and expansion of existing projects.
  • Prepare a form for the financial feasibility study using the Excel program.
  • Apply various methodologies in promoting and increasing investment opportunities and analyzing their financial indicators.
  • Distinguish the financial rules and policies that must be mastered in order to tighten these studies, which ultimately leads to the establishment of successful investment projects.
  • Prepare economic and technical studies related to new projects or expanding existing ones.
  • Determine recent information related to the investment atmosphere.
  • Define the general framework, concepts and experiences learned from feasibility studies.
  • Managers and professionals responsible for preparing, writing and analyzing feasibility studies.

 

  • Feasibility study definitions
  • The objectives of the feasibility study
  • Feasibility study vs business plan
  • Feasibility study course
  • Steps for preparing a feasibility study

  • Elements of a feasibility study report
  • Executive summary
  • Feasibility study content
  • Market feasibility:
  • Marketing analysis and research
  • Types of marketing research data
  • Sales forecast analysis
  • Technical feasibility:
  • Necessary technical questions
  • Resource feasibility
  • Operational feasibility
  • Financial feasibility:
  • Project costs
  • Indirect costs
  • Ongoing costs

 

  • Preparing the financial model for the feasibility study
  • Average cost of capital (WACC)
  • Calculating shareholder cost of capital (CAPM)
  • Free cash flow (UFCF)
  • The final value of the project
  • Prepare sensitivity tables
  • Create an analysis of different scenarios

  • Financial Analysis Indicators:
  • Liquidity rates
  • Operations rates
  • Leverage rates
  • Insurance rates
  • Profitability rates
  • Investment Appraisal Analysis:
  • Break-even points for sales and quantity
  • Payback period (PP)
  • Net present value (NPV)
  • Internal rate of return (IRR)
  • Profitability Index (PI)

 

  • Summary and internal recommendations
  • Evaluating feasibility studies
  • Common mistakes in using the results of the feasibility study
  • Offers application

 

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