Modern Methods of Economic Feasibility Study

Course Objectives

 

• To familiarizing participants with the basic skills to prepare economic feasibility studies, to work on to analyze their implications and make the appropriate investment decision.

• Introducing the concept, relevance and components of the evaluation study, how it is prepared, what elements it contains, and to judge the appropriate decision to move forward or stop the implementation of the project.

• Familiarizing participants with the scientific and practical methods applied in the field of economic feasibility studies.

• Providing participants with the project’s relations with the Economic and social development plan.

• Providing participants with a marketing study of the project and analyzing the factors influencing internal and external demand for the feasibility of the project, assessing the size of the demand and evaluating marketing decisions.

 

Who Should  Attend ?

 

• Heads of financial sectors, financial managers and their assistants, economic entrepreneurs, heads of auditing, control and review sectors, managers of marketing and production, and anyone who is responsible for the preparation of business economic feasibility studies, bank employees and investment companies employees, credit staff and lending officers in banks, financial institutions, various project finance companies, and personnel who are prepare and rehabilitated them for previous positions, and those who wish to develop their skills in project feasibility studies.

 

Course Schedule

Basic concepts of economic feasibility study

 

• Economic feasibility study and investment project.

• Investment opportunity and opportunity cost.

• The time value of the monetary unit.

• Choosing the best choice between different alternatives.

 

A brief study of the market and technical study of the project

 

• Describing the market and knowing the current size of the demand.

• Studying the local and foreign competitive projects.

• Market Case Study (competition, Monopoly…).

• Studying the size of the demand and expected sales.

• Studying marketing channels and promotional and advertising tools.

• Identifying the project implementation needs.

• The appropriate production method and the quality of the technology required.

• The availability of the project site and the stability of its environment.

• Studying the production elements and raw materials.

• Identifying other production inputs.

 

Marketing study and methods of estimating demand size and marketing gap

 

• The target market of the project.

• Studying customers to determine their behavior and desires.

• Studying similar products available on the market.

• Methods of forecasting the current market demand.

• Methods of measuring the current marketing gap.

 

Financial study of the project and financial criteria used in project evaluation

 

• Means of financing.

• Basic financial statements (income List-cash flow list).

• The balance sheet.

• Financial ratios and small investment return.

• Average accounting revenue.

• Recovery period and net present value.

• Internal rate of return.

 

Planning and forecasting the expected costs and returns of different alternatives

 

• Estimating expected costs and revenues.

• Estimating gross profit and net profit.

• Estimating the volume of sales and production capacity that achieves the breakeven point.

• Estimating returns at production levels, sales prices and different sales volumes.

• Identifying the standards of comparison with industry level and comparison with competitors.

• Identifying the determinants and limitations on market analysis.

• Determining the volume of cash inflows and outflows at the initial stages of production.

• Building and preparing the estimated financial statements.

 

Assessment of alternatives and preparation of the study

 

• Method of recovery period.

• The current net value method.

• The accounting rate of return method.

• The rate of return on investment method.

• Annual Cost method.

• Index of profitability.