Feasibility Studies and Project Valuation
Objectives:
Introduce the participants to the nature of feasibility studies for projects, their significance, methods used therein, and train in the interpretation and analysis of their results
Contents:
• Introduction
• Definition of investment projects
• Capital expenditure and revenue expenditure
• Emergence of the project idea
• Steps of feasibility study
- Technical feasibility
- Financial feasibility
- Marketing feasibility
o Local markets study
o Foreign markets study
• Open discussion and examples
• Investment projects and their classifications
• How to calculate a project cash flows
- External cash flows
- Internal cash flows
• Cash flows excluded from feasibility study
• Concept of present value
• Characteristics of used discount rate
• Examples and practical cases
• Standards of new projects evaluation
• Traditional methods in projects evaluation
- Accounting rate of return
- Payback period
• Methods based on flows discount
• Examples and practical cases
• Methods of net present value
• Internal rate of return
• Problems related to internal rate of return
• Capital rationalization
• Impact of inflation on investment decisions
• Examples and practical cases
• Risk and uncertainty management and feasibility study decisions
• Sensitivity analysis
• Scenario analysis
• Simulation
• Economic and social analysis of projects
• Examples and practical cases
• Conclusion
Course Duration:
15 training hours / 3 days
For more details don’t hesitate to contact the training officer:
on telephone number 17383001
or e-mail at: gizrmrmt.yzsizrm@gztrgizrmrmt.xln