- Feasibility
- NPV & IRR
- Investment Decisions
What you’ll learn
- Translate a project concept into financial assumptions and a cash flow model.
- Estimate investment costs, operating revenue, expenses and funding needs.
- Assess project returns using net present value, internal rate of return and payback.
- Distinguish project cash flows from cash flows to equity investors.
- Test sensitivities and downside scenarios to identify critical viability drivers.
- Prepare a feasibility recommendation supported by assumptions, results and risks.
Course Description
Assess whether a proposed project makes financial sense before committing capital. This practical course guides participants through investment planning, project cash flow modelling, return analysis and scenario testing using a simplified investment case.
Designed for project managers, business planners, analysts and investment teams with basic Excel skills and familiarity with financial concepts, the workshop uses a staged model template to keep the exercises achievable within one day. Participants will evaluate financial viability, identify funding gaps and explain the conditions under which the project should proceed, be revised or be deferred.
Course Contents
Module 1: Framing the Feasibility Assessment60 minutes
- Define project scope, evaluation period and investment objectives.
- Distinguish financial viability from market and operational feasibility.
- Identify assumptions requiring evidence or further validation.
- Map the project timeline and key cash flow drivers.
Practical activity: Prepare an assumption register for the sample project.
Module 2: Modelling Investment Costs and Funding90 minutes
- Estimate development or setup costs and initial working capital.
- Phase expenditure according to the project schedule.
- Include contingency and cost escalation assumptions.
- Set up a simplified debt and equity funding schedule.
Practical activity: Build the investment cost schedule and estimate the funding requirement.
Module 3: Forecasting Operating Cash Flows90 minutes
- Model revenue using capacity, utilisation, volume and pricing.
- Forecast operating expenses and ongoing capital expenditure.
- Incorporate simplified working capital and tax assumptions.
- Calculate project cash flows before financing.
Practical activity: Build an operating forecast and link it to the project cash flow schedule.
Module 4: Evaluating Investment Returns90 minutes
- Calculate NPV, IRR and payback using the project’s cash flows.
- Use a discount rate consistent with the cash flow basis.
- Include residual value or asset recovery assumptions where relevant.
- Review a simplified equity cash flow after debt drawdowns, interest and repayments.
Practical activity: Calculate project returns and compare project-level and equity-level results.
Module 5: Sensitivity, Scenarios and Viability Drivers90 minutes
- Test changes in investment cost, pricing, utilisation and operating expenses.
- Compare base, upside and downside scenarios.
- Assess the effects of project delays on returns and funding.
- Identify viability thresholds and assumptions with the greatest impact.
Practical activity: Build a sensitivity summary and identify the conditions needed for acceptable returns.
Module 6: Feasibility Conclusions and Investment Recommendations60 minutes
- Review model consistency and the reasonableness of assumptions.
- Summarise investment costs, funding needs and financial returns.
- Explain risks, limitations and evidence still required.
- Recommend whether to proceed, revise or defer the project.
Practical activity: Prepare a one-page feasibility recommendation based on the model results.