SYNOPSIS

Project financial feasibility study focusses the investigation of the overall financial situation around the project i.e. to assess and prove the economic viability of the business idea. Based on cost projections, the study can greatly assist organizations to understand various financial areas (by periods) of the project. Project Feasibility studies are greatly beneficial as it provides stakeholders with a clear picture of the organization’s business idea. Additionally, the following key benefits can be reaped:

•    Provide project teams more focus  
•    Assist decision making between multiple business alternatives.
•    Identifies a valid reason to undertake the project.
•    Enhances the success rate by evaluating multiple parameters.

Using the computed IRR, NPV and DSCR as guides, a decision can be then be made whether the project is economically viable. While most of us understand the IRR, NPV and DSCR, it must be noted that computing these metrics require further understanding of financial statements such as Income Statement, the Balance Sheet and the Cash Flow Statement. On today’s topic, it is believed many certified project managers focus their energies on technical feasibility and project delivery. On the Financial feasibility and the use of metrics such as IRR, NPV, DSCR, Net Cash Flow etc, while many of us broadly understand these terms, we shy away from engaging in this important decision making area. But in computation of these variables require further understanding of Financial Statements. There are many who shy away from performing Project Financial Feasibility. Is it a difficult area to master?

The presenter will touch on the overall process on developing a Project Finance Model and the knowledge and skillset required for performing this important task. He will discuss the overall Project Finance Modelling process and how we go about deriving the important ratios/metrics which can confirm the financial feasibility of the project.


BIODATA OF SPEAKERS

Mr. Arul is a project management professional with over 35 years experiences managing teams, providing technical expertise and leadership to banking projects for the financial industry. He has been working in the Self-Service industry for the last 35 years. For those who are unfamiliar with Self-Service Banking, it is about ATMs, Cash Deposit Machines, Cash Recyclers, Solutions around these Machines and Self-Service networks and not mentioning the sales and service of these devices. He has been with NCR who is the leading player in this space for 28 years and now is an independent consultant. His assignments at NCR saw in work in the Philippines, India and around the Asia-Pacific region for over 20 years. He graduated from University Malaya in year 1974 with Bachelor of Science (Mathematics).

His organization – ARULC CONSULT is a recently enrolled R.E.P. He himself is a PMP, PMI-RMP and certified in Microsoft Project, Microsoft Certified Technology Specialist, (MCTS) NCR certified Trainer, and also a Microsoft and HRDF certified Trainer. He is also probably the only PMI Malaysian Chapter retiree member.