VIFM - Virginia Institute of Finance and Management
 Back to catalogue
Finance
Intermediate

FEASIBILITY STUDIES: PREPARATION AND ANALYSIS

2–5 daysENclassroom · virtual

Course overview

If you fail to plan; then plan to fail. The preparation of feasibility study requires meticulous planning skills as well as the competences of intuition and emotional control. This course aims at providing participants with the ability to model their feasibility study using Excel and addressing market, technical and financial aspects. Also, participants will be enabled to appraise different investment types such as industrial and service projects.

Target audience

Individuals involved in preparing and analyzing feasibility studies, project managers, project sponsors, functional managers, senior management and executives. This course is worth 30 PDUs.

Course objectives

  • List objectives of their feasibility study
  • Outline fundamental elements of their feasibility study
  • Model their feasibility study financials using Microsoft Excel
  • Appraise their projects viability using different investment methods
  • Summarize their feasibility study recommendations and conclusions

Target competencies

Market analysis.
Risk Management
Cost-Benefit Analysis
Data Collecting and Processing
Financial modelling
Investment Appraisal methods & techniques
Environmental and Social Impact Assessment
Report & recommendation writing skills

Course methodology

A variety of methodologies will be used, including building feasibility models, discussions, individual and group exercises, practical case studies, and hands-on training using Excel.

Course outline

INTRODUCTION

  • Feasibility study definition
  • Myths about feasibility studies
  • Objectives of feasibility study
  • Differences between feasibility study and business plan
  • Types of Feasibility Studies

FEASIBILITY STUDY FOUNDATIONS

  • Marketing feasibility

    • Market analysis
    • Market research data
    • Conducting Market Surveys
    • Analysis of sales projections
    • Projection of Revenues.

  • Technical feasibility

    • Capital expenditures (CAPEX)
    • Operating expenses (OPEX)
    • Operational feasibility
    • Techniques of Cost estimation
    • Cost Classification and Allocation

  • Financial feasibility

    • Profit & loss (income statement)
    • Balance sheet (Financial Position Statement)
    • Cash flow statement
    • Risk Assessment
    • Legal, Environmental and Social Impact

BUILDING FINANCIAL MODEL USING MICROSOFT EXCEL

  • Structuring the financial model
  • Calculating weighted average cost of capital (WACC)
  • Figuring cost of equity using capital asset pricing model (CAPM)
  • Preparing unlevered free cash flow (UFCF)
  • Analyzing terminal value of the project
  • Breakeven and CVP analysis
  • Conducting sensitivity analysis
  • Generating different scenarios

ECONOMIC ANALYSIS AND APPRAISAL

  • Analysis of financial parameters

    • Liquidity ratios
    • Operating ratios
    • Financial leverage ratios
    • Security ratios
    • Profitability ratios

  • Appraisal of investment

    • Quantity and sales breakeven points (BEB)
    • Payback period method (PP)
    • Net present value method (NPV)
    • Internal rate of return method (IRR)
    • Profitability index method (PI)
    • Which method is preferable.

  • Project selection and feasibility models

    • Non-numeric models
    • Numeric models
    • Scoring models

RECOMMENDATIONS AND CONCLUSIONS

  • Asking the critical questions
  • Contents of conclusion section
  • Report appearance
  • Evaluating feasibility studies
  • Common mistakes in using the results.
  • Factors for revising the study.
  • Report Writing and presentation skills.

Want to run this for your team?

Request a tailored quote - we'll come back with delivery options, language preferences, group-size pricing, and dates that work for you.

Request a quote