FN10

Economic Feasibility Studies

Objectives:

·        Define what a feasibility study is.

·        Discuss importance economic feasibility study of a project.

·        Apply evaluation techniques pertaining to investment projects.

·        Determine influencing factors on economic feasibility studies.

Contents:

1- Feasibility Studies and Project Evaluation

·        Concepts and features of feasibility studies and projects evaluation

·        Concepts and features of a project

·        Economic feasibility studies and projects evaluation components

·        Investment projects alternatives assessment and sorting

2- Marketing Feasibility Study

·        Current market description

·        Data requirements for market study: Requirements and sources

·        Market size forecasting techniques

3- Investment Projects Assessment Models

·        Assessment models under certainty

·        Assessment models under risk

·        Assessment models under uncertainty

4- Technical Feasibility Study

·        Alternatives generation and technical analysis

·        Financial leasing, ownership and construction choice

·        Choice of project site and preparation of production plans

5- Investment Projects Evaluation Standards

·        Payback period standard

·        Accounting rate of return standard

·        Net present value standard

·        Internal rate of return standard

·        Profitability indicator standard