Capex and schedule
What the project consumes before it generates cash.
- Investment by item and phase
- Pre-operating expenses
- Initial working capital
Finder.Corporate Finance
Feasibility studies for new projects and investments.
Finder prepares financial feasibility studies that answer, before the investment is made, whether the project pays off, how quickly and at what risk: capex, project cash flow, NPV, IRR, payback, sensitivity and risks.
The study also shows what has to be true for the project to work. That is what guides the decision and the conversation with lenders.
When it makes sense
When you need to know whether the project pays off.
- New site, plant or store
The return on the new operation and the time to payback.
- Capacity expansion
Whether additional output meets demand and margin.
- New product or line
Investment, sales ramp-up and break-even.
- Project seeking financing
The cash flow and debt service capacity a lender will review.
- Energy and efficiency projects
Savings generated, investment and return.
- Scale or location alternatives
Which configuration of the project offers the best return for the risk.
What you receive
From initial investment to return metrics.
Project revenue and costs
The assumptions behind the results.
- Volume, price and ramp-up
- Fixed and variable costs
- Applicable taxes
Projected cash flow
The cash the project generates over the horizon.
- Project and equity cash flows
- Analysis horizon
- Residual value
Return metrics
Measures that compare the project with the cost of capital.
- NPV and IRR
- Simple and discounted payback
- Hurdle rate
Sensitivity and scenarios
How much assumption error the project can absorb.
- Critical variables
- Break-even point
- Base, downside and upside cases
Financing and risks
How the project can be financed and what could go wrong.
- Financing structure
- Debt service capacity
- Risk matrix and mitigation
When a study must follow an institution's template, as in public calls or financing applications, Finder adapts the structure to the required format.
Point of view
What has to be true.
Every project looks viable in the spreadsheet's base case.
The study tests the assumptions that weigh most and shows the margin for error the project can take before it stops paying off. That margin is the most useful information for the decision-maker.
- Volume: how much sells, and when.
- Price: what the market will pay.
- Cost: what operations consume.
- Timing: when the project is up and running.
How we work
From project scope to recommendation.
- Project scope
What will be invested, where, at what scale and on what timeline.
- Assumptions and data
Market, costs, prices and schedule, each assumption with its source.
- Project model
Investment, results and cash flow over the horizon.
- Returns and sensitivity
Metrics, scenarios and the variables that move the outcome.
- Report and recommendation
Conclusions, risks and the conditions for the project to pay off.
Frequently asked questions
What clients usually ask.
What are NPV, IRR and payback?
NPV (net present value) is the value the project creates today, after discounting at the cost of capital. IRR (internal rate of return) is the return rate implied by the project's cash flows. Payback is the time it takes to recover the investment.
They complement each other: NPV says how much, IRR says at what rate, payback says how quickly.
Which discount rate should a feasibility study use?
The rate should reflect the cost of capital and the project's risk, not just the cost of debt. It usually starts from the company's cost of capital, adjusted for project-specific risk. Because it is a sensitive assumption, it is also part of the sensitivity analysis.
How do you assess the feasibility of an expansion?
Isolate what is incremental: the investment, revenue and costs that exist only because of the expansion. Project that incremental cash flow, compare it with the cost of capital and test the assumptions that matter most. Then look at the whole company: the expansion must fit the cash and borrowing capacity during implementation.
Is a feasibility study the same as a business plan?
No. A feasibility study answers whether a specific project pays off. A business plan is broader: strategy, market, operations and numbers for the whole business, written for the people who must approve it. The study is often one part of the plan.
Related pages
Finder.Financial ModelingIntegrated three-statement models with scenarios, debt capacity and returns.Explore financial modelingFinder.Investment AnalysisAlternatives compared on the same basis, with the impact on cash and debt.Explore investment analysisFinder.Market ResearchMarket sizing, competition, trends and benchmarking, with every source cited.Explore market research
Contact
Let's assess your project.
Tell us what will be invested, on what timeline and which decision is at stake. We will suggest the scope, information needed and timeline of the study.
The first conversation is free of charge.