Introduction
In the world of business and investment, feasibility studies are considered an essential tool for strategic planning and decision-making related to launching new projects or expanding existing ones. This training program aims to enhance participants’ skills in preparing integrated feasibility studies covering the economic, financial, technical, and engineering aspects of projects.
Through exploring advanced methods for analyzing market needs, estimating costs, and evaluating expected returns, participants will gain the ability to use accurate data and reliable sources to develop feasibility studies that support success and reduce the risks of failure. The program will also provide participants with a deep understanding of the fundamental concepts and practical expertise related to feasibility studies, with a focus on the importance of proper pricing and demand forecasting to ensure project success.
Objectives
- Develop participants’ skills in preparing feasibility studies for projects, including the renewal and expansion of existing projects.
- Enable participants to learn financial methods that contribute to establishing successful projects.
- Equip participants with the ability to prepare economic and technical studies for new projects or expansions of existing ones.
- Introduce participants to practical examples of feasibility studies for real-world application.
- Enhance participants’ understanding of the fundamental concepts and practical experiences related to feasibility studies.
- Explain the concept and importance of economic feasibility studies in project evaluation.
- Clarify methods for estimating expected demand and the importance of effective pricing strategies to ensure project success.
- Identify factors affecting costs and methods for estimating them and selecting suitable financing options.
- Train participants on preparing technical studies, including determining project requirements for energy, equipment, and space.
- Apply different methods for evaluating the economic feasibility of projects, such as Payback Period and Net Present Value (NPV).
Course Outline
Module One: Introduction to Feasibility Studies
Module Two: Fundamental Components of Economic Project Studies
A feasibility study consists of the following sections:
- Marketing Study and Estimation of Expected Demand for Products and Services
- Marketing Budgets and Pricing Policies
- Factors Affecting Costs and Their Types
- Technical and Engineering Study and Determining the Required Resources and Capacities to Meet Customer Commitments
- Financial Study, Including Estimation of Project Costs, Financing Structure and Sources, and Projected Financial Statements
- Economic Feasibility Study and Comparison Between Expected Returns and Project Costs
Module Three: Technical and Engineering Feasibility Study
- Production Capacity Study and Selection of the Appropriate Project Size
- Engineering Study of the Project
- Project Site Analysis and Evaluation
- Production Process Study and Determination of Required Space
- Identification of Machinery and Equipment Requirements
- Determination of Raw Materials and Supply Requirements
- Estimation of Energy Requirements
- Estimation of Furniture and Transportation Needs
- Estimation of Direct Labor, Supervisory, and Administrative Staffing Requirements and Organizational Structure
- Estimation of Capital Costs
- Project Cost Analysis for Preparing Financial Statements and Estimating Financial Requirements
- Estimation of Project Investment Costs
Module Four: Financial Feasibility Study
- Short-Term Financing Sources
- Estimation of the Average Cost of Capital
- Selection of Financing Structure
- Analysis of Financial Success and Failure Models for Projects
Practical Application:
A practical model for preparing a comprehensive feasibility study covering all sections, including an explanation of the evaluation methods and alternatives used in preparing the study.
Evaluation Methods Include:
- Payback Period Method
- Net Present Value (NPV) Method
- Accounting Rate of Return Method
- Return on Investment (ROI) Method
- Equivalent Annual Cost Method
- Profitability Index
- Inverse Payback Period
Target Audience
- Businessmen and Entrepreneurs
- Managers and Staff of Planning and Follow-up Departments
- Financial and Administrative Managers, Experts, and Consultants
- Investment Managers in Financial and Investment Institutions and Project Financing Companies
- Credit and Facilities Managers and Officers in Banks and Financial Institutions
- Financial Analysts
- Anyone Involved in Preparing and Evaluating Project Feasibility Studies