Preparing Economic and Financial Feasibility Studies
Turn a project idea into a well-founded investment decision.
About this course
Turn a project idea into a well-founded investment decision. Over eight days, about 45 to 48 hours of training, you will learn to prepare complete economic and financial feasibility studies, from market and technical analysis to cost estimates, financing plans and projected financial statements.
You will evaluate projects with NPV, IRR, payback and break-even, test your assumptions with sensitivity analysis, and finish by building and presenting a feasibility study of your own. An Alalamia certificate is awarded on completion.
What you'll learn
- Explain the purpose, stages and structure of a feasibility study
- Carry out a market study that estimates demand, pricing and expected sales
- Assess technical feasibility, including location, capacity, technology and staffing
- Estimate investment costs, operating costs and working capital needs
- Build projected income statements, cash flows and balance sheets
- Evaluate projects using NPV, IRR, payback and break-even analysis
- Test results with sensitivity and scenario analysis
- Write and present a clear, well-structured feasibility report
Curriculum
- From project idea to opportunity study
- Pre-feasibility and detailed feasibility studies
- Stages and structure of a study
- Who uses a feasibility study and why
- Market research methods
- Estimating and forecasting demand
- Competition and pricing
- Preparing the sales forecast
- Location and site selection
- Capacity and production planning
- Technology, equipment and suppliers
- Staffing requirements
- Legal form and regulatory requirements
- Organisational structure of the project
- Environmental and social impact
- Fixed capital costs
- Pre-operating expenses
- Working capital requirements
- Operating cost estimates
- Sources of finance
- Loan repayment schedules
- Choosing the discount rate
- Balancing debt and equity
- Projected income statement
- Projected cash flow statement
- Projected balance sheet
- Documenting key assumptions
- Net present value
- Internal rate of return
- Payback and discounted payback
- Profitability index and break-even point
- Commercial and economic profitability
- Value added and employment
- Foreign exchange effects
- Contribution to the national economy
- Sensitivity analysis
- Scenario analysis
- Inflation and currency risk
- Identifying key risks and mitigation
- Structure of the feasibility report
- Writing the executive summary
- Presenting to investors and lenders
- Capstone feasibility study
Who it's for
Entrepreneurs, project and investment staff, accountants and analysts who prepare or review feasibility studies.
Before you start
- Basic familiarity with accounting concepts
- Working knowledge of Microsoft Excel
Part of these Alalamia diplomas
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