Excel-based Feasibility Study_en

Feasibility Study for Capital Investment

English-based and Excel-based

Objectives:

1. Importance of Feasibility study

2. Business Environment analysis, Legal Study

3. Technical and Engineering Study, Market Study

4. Financial Study, Financial Analysis, Risk Analysis

Contents

INTRODUCTION

- Feasibility Introduction, Owners’ Information, Study Area, Methodology,

- Limitation of Study, Consultancy Team .

BUSINESS ENVIRONMENT

- General Economic Situation, Project’s Segment Economics,

- Project’s Objectives, Project’s Justifications

LEGAL STUDY

- Startup Costs, Business Forms, Project’s Investments,

- License and Permissions .

TECHNICAL STUDY

- Selecting Project Location, Property and Land, Building and Installation,

- Building Design, Machinery, Selecting Machinery Sources, Main Plant and

- Machinery, Supporting Machines, Vehicles, Vehicles Operating Costs,

- Lifts and Handling Equipment, Office Equipment, Office Furniture,

- Material, Selecting Raw Material Sources, Production Formula,

- Direct Raw Material, Indirect Raw Material, Labor, Direct Labor Cost,

- Indirect Labor Cost, Organizational Chart, Operating Cost .

MARKETING STUDY

- Product Description, Target Customer Identification,

- Classified into Categories, Product Demand Estimation, Forecast,

- Trend, Income Elasticity, Price Elasticity, Average Annual Consumption,

- Product Supply Estimation, Competitors’ Capacity, Project Market Share,

- Product Pricing Strategies, Competitor’s Price, Markup Over Cost …..

- Price, Sales Channels, Promotions, Annual Revenues .

FINANCIAL STUDY

- Investment Costs, Working Capital is a percentage of Current/

- Operating Costs, WC Depends on number of Operating Cycle per

- Year. Which vary from 1 - 18 months, Current/Operating Costs,

- Current/Operating Revenues, Accumulated Depreciation, Expected

- Income Statement, Opening Balance Sheet.

FINANCIAL ANALYSIS

- Payback Period [PP], Return on Investment [ ROI ],

- Profitability Index [ PI ], Net Present Value [ NPV ],

- Internal Rate of Return [ IRR ], Preferable Rate of Return [ PRR ],

- Sensitivity Analysis

RISK ANALYSIS

- Interest Rate, Risk Rate, Assurance Rate, Rate of Return

- Variance, Standard Deviation Projected Cash Flows

- Probability of Realizing the Net Cash Flows, Weighing Methods

End