How to Conduct Project Feasibility Studies

How to Conduct
Project Feasibility Studies
- a Systematic and
Integrated Approach
May 27-28, 1998 w 9.00am - 5.00pm
Armada Hotel, Petaling Jaya, Malaysia

Led by The Business Finance Specialist
David Ng
the author of
"Essentials of Financial Management"

Another World-Class Event brought to you by

Official Hotel

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Capital investments represent a sizeable outlays and are often irreversible. It is also the major decision making tools of corporate finance that has a significant impact on the firm’s share price. Project financing by banks also requires a complete feasibility study on the said project. Thus this workshop is conceived with the idea of sharing the right skills that are required in conducting an effective project appraisal.

This workshop will focus on the correct principles of cash flows generation, techniques of evaluation and selection of projects. The treatment of risk and inflation and other related issues will also be discussed.

OBJECTIVES

Key areas of focus

List and apply the principles of cash flows generation
Use the traditional methods of project evaluation
Use discounted cash flows techniques - NPV and IRR
Estimation of the cost of capital
List the factors affecting the choice of financing
Applying different project selection techniques under different situation
Project’s risk analysis and the impact of inflation
Discuss the strategic value of a project

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Day One

CLASSIFICATION AND TYPES OF CAPITAL EXPENDITURE

Importance of capital expenditure to a firm
Classification of capital expenditure
Types of projects available to the firm

PRINCIPLES IN ESTIMATING CASH FLOW FROM THE PROJECT

Guidelines to estimate the relevant cash flows from the project
Sunk cost, opportunity cost and fixed costs
Incremental after tax cash flow

TECHNIQUES OF PROJECT EVALUATION

Traditional techniques of evaluation - payback period and accounting rate of return
Discounted cash flows techniques - Net Present Value (NPV)
Problems with Internal Rate of Return (IRR)

SKILLS DEVELOPMENT SESSION

Hands-on exercise and discussion
Group discussion
Presentation feedback and summary

Day Two

PROJECT FINANCING CONSIDERATION

Estimating the cost of debt capital
Estimating the cost of equity capital
Factors affecting choice of financing

SELECTION OF PROJECT UNDER BUDGET CONSTRAINT

Types of constraints - internal and external
Selection of project under capital rationing
Selection of projects with different life span

TREATMENT OF RISK AND INFLATION

Different techniques of treatment of risk
How to incorporate inflation rate into cash flow projection
Strategic value of a project

SKILLS DEVELOPMENT SESSION

Hands-on exercise and discussion
Group presentation
Presentation feedback and summary

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Project Managers, Project Engineers, Corporate Planners, Financial Officers, Financial Analysts, Loan Officers, Operation Managers and Entrepreneurs.

TEAM ATTENDANCE HIGHLY RECOMMENDED

This is to facilitate successful implementation of the knowledge acquired from the program. An incentive will be given for 3 or more persons from the same organization registering for the same program.

Certificate of Participation will be awarded.

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Details

Venue	Armada Hotel, Petaling Jaya, Malaysia
Dates	May 27-28, 1998 w 9.00am - 5.00pm
Individual Seminar Fee	RM1,080 per person per day. Inclusive of seminar materials, lunches and refreshments for the duration of the seminar.
Group Discount	Only RM980 per person for 3 or more from the same organization.
Cancellation Policy	Cancellations are valid only in writing (either through fax or mail). Full refunds applicable if written notice is received at least 2 weeks before each program. A 25% cancellation fee will be levied for cancellations received less than 2 weeks before the program. No refunds after commencement of seminar. Substitutions are allowed.
SBL SCHEME HRD COUNCIL	RAYMA is an Approved Training Provider with HRDC whereby approved training programs can qualify for 75% rebate of the fee. Please apply through your HR Department at least 30 days in advance of the program.
THE RAYMA GUARANTEE	A full refund to you if we do not deliver what we promised. Just turn in your workbook to us at the end of the day!
REGISTRATION & ENQUIRIES	RAYMA Management Consultants (M'sia) Sdn Bhd 2B Jalan SS24/13, Taman Megah, 47301 Petaling Jaya Selangor Darul Ehsan, Malaysia Tel: +60 3 7044 666 Fax: +60 3 7044 484 E-mail: raymaseminar@po.jaring.my Contact: Wendy Song

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