A Feasibility Study - Step by Step

*Source file included in the description.

This video shows you how to create a simple feasibility study. It is based on a 5-years forecast for an IT company that sells two products. The initial assumptions are given. We complete all the required and possible calculations as a first step, set up the financial statements side-by-side, construct investment cashflow statement, and compute the NPV and IRR to lookup the feasibility of the project.

The study follows a dynamic approach where the user only needs to change the assumptions later, and it will be reflected on the whole study. Minimal knowledge of MS Excel is sufficient to understand the tutorial.

You can find materials related to this video following the links below:

*Extension: we add a loan to the study. This affects the forecast, but also shows you how to adapt structural changes to the business plan. The loan concept, inclusive of interest payments as well as repayments of the principle amount, is also covered in details:

*Correction: There was a minor error related to remaining inventory calculations in the study. Please find the fix on this link:

*Source File: (please read the description)

*Additional Template: you can download and work with a more dynamic feasibility study following this link:

Please let me know if you have any questions.

Class: Spreadsheets for Financial Mathematics
Program: Bachelor in Management
University of Luxembourg - Spring 2015

[muhammadrashidkhan]

sir your this video made my career may God bless you with great great blessings, no words to thanks you, based on your this file i prepared my company's feasibility study and i am confirmed as finance manager in qatar, sir you are real teacher those who teach what they actually practice, remain thankful and your student forever

[vangeliseleftheriou]

I'm a certified management consultant and i can say that the proposed methodology is outstanding. Those in business understand that this video worth is of thousands. Well done. Subscribed!

[mylifepurpose]

Wow I'm able to create the same spreadsheet thank you so much Brother. Love from Tanzania

[anasaljarboua]

Clear, prefect, and wonderful. Thank you so much.

[zoz]

Amazing ... Great Effort & perfect job. Thanks a million for your kind assistance.

[bunmeng]

Thank you for sharing with us. It's very helpful

[tootyalotibi]

thanks for this lesson you make it so clear for me

[Radiofandango]

Hi! Thank you for the great work and for sharing it with us! I just want to ask you, would be possible to use this template for a feasibility study for a new restaurant/coffee shop or maybe you have a better template to recommend?

[ssabi]

hi, thaaaanks for the amazing work done here....can you make it easy for us and unprotect the sheet since there is PW protection so we can update the sheet as per our needs?

[uthmanzubairoluwatos]

very educative, I want to carry out feasibility study for e-learning where I will be making profit only on adverts displayed on my site. I have been having serious nightmare doing this.

[mohammedhani]

Perfect video mr. Ali, please would you by chance know how to set up feasibility study for farming.

[pratimtalukdar]

Thank you. It helped me clear many concepts. Is the excel sheet uploaded somewhere?

[rulaabunuwar]

Thank you so much.. its is very useful.. can you provide us with a feasibility study based on loan and WACC

[abideenadeniyi]

Thanks for sharing this knowledge. Is there any difference between business plan and feasibility study

[sherifhesham]

Thank you for you video, i wasn't able to get to the source file in the description, it seems the link is dead can you update it?

[Ibrahi]

Thanks so much for your support, how about a manufcating plant, would this template work for it?

[owfaa]

Thanks, it was the so helpful
i send you my email through your web site to get excel format templat

[leedavies]

I need some help with my feasibility study, any chance I can get you email for advice please?

[rachaelford]

Would you by chance know how to set up a feasibility study for a family entertainment center (arcade)?

[gtesh]

Is the Inventory calculation okay? E.g. with Laptops, given sales double every year starting at 200 and purchases double every year starting at 230, how can the cumulative inventory at the end of the period be so high?