Preparation, Analysis, and Evaluation of Feasibility Studies

Preparation, Analysis, and Evaluation of Feasibility Studies

Methodology

This training course utilizes a combination of interactive methods such as presentations, exercises, and case studies. It also includes practical training on preparing a feasibility study model using Excel software.

Merck provides laptops for practical activities in preparing a feasibility study using Excel. Feasibility study templates and electronic copies of feasibility study presentations are distributed as well.

Course Objectives

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

• Define feasibility studies and compare them with business plans.
• Identify important elements in the composition of feasibility studies.
• Prepare a model for financial feasibility study using Excel software.
• Apply different methodologies to enhance and increase investment opportunities and analyze financial indicators.
• Analyze feasibility studies and understand their advantages and disadvantages.

Target Audience

This training course targets project managers and professionals responsible for preparing, writing, and analyzing feasibility studies. The course is equivalent to 30 units of professional development.

Program Content

• Introduction and definitions
• Feasibility study definitions
• Objectives of feasibility studies
• Feasibility study vs. business plan
• Feasibility study cycle
• Steps to prepare a feasibility study
• Elements of a feasibility study
• Feasibility study report elements
• Executive summary
• Feasibility study content
• Market feasibility
• Market analysis and research
• Types of market research data
• Sales forecast analysis
• Technical feasibility
• Essential technical questions
• Resource feasibility
• Operational feasibility
• Financial feasibility
• Project costs
• Indirect costs
• Ongoing costs
• Using Excel in financial models for feasibility studies
• Preparation of the financial model for feasibility study
• Weighted Average Cost of Capital (WACC)
• Calculation of Capital Asset Pricing Model (CAPM)
• Unlevered Free Cash Flow (UFCF)
• Project terminal value
• Sensitivity analysis preparation
• Creating analysis with different scenarios
• Analysis and evaluation of feasibility studies
• Financial analysis indicators
• Liquidity ratios
• Operating ratios
• Financial leverage ratios
• Coverage ratios
• Profitability ratios
• Investment evaluation analysis
• Break-even points for sales and quantity
• Payback period (PP)
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Profitability Index (PI)
• Application and evaluation of feasibility studies
• Summary and internal recommendations
• Evaluation of feasibility studies
• Common mistakes in using feasibility study results
• Application of presentations