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How is a Financial Feasibility study performed?

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Question added by Abdullah Mahhaden, CFA, CPA , Assurance Manager , Grant Thornton
Date Posted: 2013/06/15
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Get the following data and prepare financial statements:

 

Sales / Revenue Plan

Production / Cost of Revenue Plan

Detail of Operational Expenses

Detail of Capital Expenditure

Cost of Human Resources

 

Then check the financial feasibility by analyzing the:

 

Profitability and Cash Flow Positions

Return on Investment

Internal Rate of Return - IRR

Payback Period

Sensitivity Analysis

Arif ali farei Al Aghbari
by Arif ali farei Al Aghbari , Financial Manager , taiz

Economic feasibility study are being studied as follows1 - the preparation of the study all the details of the marketing2 - Preparation of technical study3 - START study the financial feasibility and light

Raed Nawaiseh
by Raed Nawaiseh , Manager , Jordan Enterprise Development Corporation (JEDCO)

Do you mean the Financial part of the feasibility study?? As you know, the feasibility study is devided to three sections Market, Technical and Financial.
You need to build the financial statements (Income Statements, Balance sheet, Cash Flow Statements) according to the market resarch results and after that you have to analyse the results in order to find out what is the financial situation of the project.
The most importants ratios and analysis are IRR, NPV, Pay Back Period.

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