Project Financial Feasibility Analysis
Introduction
Feasibility studies aim to logically find the strengths and weaknesses of a proposed project, opportunities and the resources required to carry through, and ultimately the prospects for success.
This program focusses on the following key areas:
- Understanding project revenues, costs, cashflows, profitability
- Understanding project Interest during Construction (IDC) and Asset Depreciation
- How the project is financed in terms of its capital structure, debt to equity ratio
- Whether the projected cashflow stream during Operations can meet the
- debt commitment.
- Analyzing key ratios such as IRR, NPV and DSCR to establish project feasibility
- Through Sensitivity Analysis understand how the project will be impacted due to changes in key variables like interest rates, Equity to Debt ratio, lower revenues etc.
- Develop the Financial Statements such as the Income Statement, Balance
- Sheet and Cash Flow Statement
PM Advance philosophy is to train and consult professionals not only based on theoretical knowledge, but also based on real-case scenarios and real experience. This will effectively impart the knowledge and the best practice skills to professionals in their daily work in respective industry.
Training Objectives
Upon completion of this course, delegates will be able to:
- Build a Project Feasibility Model using MS EXCEL from scratch
- The step sequence in building a Project Feasibility Model
- Best practices in Modelling with MS EXCEL
- How changing the key variables could impact the Project Feasibility
- Project Funding Considerations
- Addressing the Projects Risks
- How the Financial Statements are Integrated:
- The Income Statement
- The Balance Sheet
- The Cash Flow Statement
- Two (2) case Studies covered to enhance Participant’s grasp of Finance, Project and MS EXCEL concepts
Who should Attend
- Project Managers
- Program Managers
- Program Analysts
- Project Coordinators
- Portfolio Managers
- Contract Managers
- Supply Chain Managers
- Directors
- Systems Specialists
- Senior Analysts
- Risk Managers
- Financial Analysts
- Business Development Planners
Training Outline:
Day One
- Introduction to Project Feasibility Study
- The Concept of “Time Value of Money”
- Development of the Project Assumption Sheet
- Project Cost / Revenue Considerations
- Considering the Interest During Construction (IDC)
- Developing the Depreciation Schedule
- Integration of Financial Statements:
- The Income Statement
- The Balance Sheet
- The Cash Flow Statement
- Establishing a Check & Balance in the Model
Day Two
- Establishing a Check & Balance in the Model
- Computation of IRR / NPV to establish Project Feasibility
- Computation of Debt Service Coverage Ratio (DSCR) to answer the question “Can the Cash Flow Support the Project’s Debt Obligations”
- Development of a Sensitivity Analysis (SA) Table to establish the impact on the Model with variation of key variables
- Program coverage on relevant MS EXCEL functions to build the Model
- Two (2) Case Studies will be utilized to enhance the Project Feasibility Process