What the study covers
- Capital costs & working capital
- Projected financial statements
- Cash-flow projections
- NPV & IRR
- Break-even & payback period
- Sensitivity & scenario analysis
What is a financial feasibility study?
The financial study is the stage on which the investment decision is made. It combines the costs defined by the technical study with the sales estimated by the market study and builds a complete picture of the project’s financial performance over its first years of operation — so you know how much funding is needed, when the project turns profitable and what return to expect on your capital.
What does the financial study cover?
- Capital costs: land, buildings, equipment, fit-out, pre-operating expenses and working capital.
- Financing structure: the split between equity and debt, the cost of financing and any repayment schedule.
- Operating costs: raw materials, wages, rent, utilities, marketing and maintenance, separating fixed from variable costs.
- Revenue projections: based on the sales forecast and recommended prices from the market study.
- Projected financial statements: income statement, cash flow statement and balance sheet over several years.
- Profitability indicators: net present value (NPV), internal rate of return (IRR), payback period, break-even point and return on investment.
- Sensitivity and scenario analysis: the impact of lower sales, higher costs or a delayed start on the results, under optimistic, base and conservative scenarios.
Why sensitivity analysis matters
No forecast is certain, so knowing the base-case result is not enough. Sensitivity analysis shows which variables drive your profitability most and how far sales can fall before the project starts losing money — information that helps you negotiate with suppliers and lenders and make a well-founded decision.
How SCOOP prepares the financial study
We document every assumption and link it to its source in the technical and market studies, build the financial tables, have them reviewed by specialists in financial analysis, and walk you through the results and scenarios before issuing the final report.
Deliverables
A financial report with cost and revenue tables, projected financial statements, cash flows, profitability indicators, sensitivity analysis and a clear recommendation on the project’s financial viability.
FAQ about the Financial Feasibility Study
Which indicators does the financial study calculate?
Mainly net present value, internal rate of return, payback period, break-even point and return on investment. They should be read together, alongside the sensitivity analysis, rather than one at a time.
How many years do the projections cover?
Usually five to ten years, depending on the nature of the project, its useful life and any lender requirements.
Can the financial study be prepared without technical and market studies?
Yes, if you already have reliable cost and sales data — but the accuracy of the results depends directly on those inputs, so we review them with you before starting.