Feasibility Studies: Preparation, Analysis and Evaluation

Feasibility Studies: Preparation, Analysis and Evaluation

Why Attend

This course aims to provide participants with the competencies required to prepare, analyze, and evaluate feasibility studies. The course involves building a feasibility study financial model using hands-on training in Microsoft Excel. The course also aims to enable participants to appraise service and industrial investments using different capital budgeting techniques and analyze the related financial parameters. This course aims

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Overview
Course Methodology

The course uses interactive techniques, such as brief presentations by the consultant and the participants, group exercises, and case studies. The course also includes building a feasibility study model using Microsoft Excel software. 

Course Objectives

By the end of the course, participants will be able to:

  • Explain feasibility study components, objectives, and cycle
  • Identify the crucial elements in a feasibility study
  • Build a feasibility study financial model using Microsoft Excel
  • Apply different investment appraisal methods and analyze financial parameters
  • Analyze the feasibility study and find its merits and shortcomings
Target Audience

Project sponsors, senior management, functional managers, project managers, and individuals involved in preparing, writing, and analyzing feasibility studies. This course is worth 30 Professional Development Units (PDUs).

Target Competencies
  • Planning
  • Analyzing data
  • Evaluating options
  • Thinking proactively
  • Managing scenarios
  • Cognitive ability
Note

This is a hands-on training course using laptops, which Meirc will make available for the duration of the course. For courses outside the UAE, participants must bring their laptops with a fully working version of Microsoft Excel 2016 or newer.

Meirc is assigned as a Registered Educational Provider (R.E.P.) with the Project Management Institute (PMI®). 
This course is worth 30 PDUs.

Course Outline
  • Introduction and Definitions
    • Definitions of 'feasibility study'
    • Objectives of a feasibility study
    • Feasibility study versus business plan
    • Feasibility study cycle
    • Preparation steps for a feasibility study
  • Feasibility Study Elements
    • Report elements of the feasibility study
    • Executive summary
    • Outline of the feasibility study
    • Marketing feasibility
      • Market research and analysis
      • Market research data types
      • Sales projection 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 financial model of the feasibility study
    • 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 analyses
  • Appraisal and Analysis of the Feasibility Study
    • Financial analysis parameters
      • Liquidity ratios
      • Operating ratios
      • Financial leverage ratios
      • Security ratios
      • Profitability ratios
    • Investment appraisal analysis
      • Quantity and sales Breakeven Points (BEP)
      • Payback Period (PP)
      • Net Present Value (NPV)
      • Internal Rate of Return (IRR)
      • Profitability Index (PI)
  • Evaluation and Implementation of the Feasibility Study
    • Internal recommendations and conclusions
    • Evaluating feasibility studies
    • Common mistakes in using the feasibility study results
    • Implementing the proposals
    • Post-implementation results review
Associations
Associations
Project Management Institute (PMI)

Meirc is a member of the PMI ATP Program. PMI does not specifically endorse, approve, or warrant ATP’s products, courses, publications, or services. The PMI ATP seal is a registered mark of the Project Management Institute, Inc.

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