DR.A.M.HEGAZY & co

Introduction about the Project: The introduction section about the project includes a general description of the project and its main components, its preliminary capital in addition to the various tax exemptions which the project can benefit (if any) from within the requirements of the various laws including tax and investment laws. Legal Study: The legal study section includes the proposed legal form for the new project with the aim to achieve the maximum financial savings and management efficiency needed for the project. Marketing Study: The marketing study aims to achieve the following objectives: Determine the kind of services required from the proposed project that can achieve the maximum economic benefits. Determine the expected demand of these services based on the data available about the areas under study and the surrounding of the site of the project. Analyze Competitors price to determine the best prices for services provided by the new project that achieve the best return for the new project. Study and analyze the expected activities of the new project and the feasibility of the expected revenues to be realized from the operations of the project. Analysis of Investment Cost: Study and analyze the component of the expected capital investment cost with the aim to identify the needed capital of the project which will be used to buy all fixed assets of the project and the related investment structure. Determine the amount of the expected working capital and the preliminary general reserve and the component of pre–operating expenses in addition to the pre–organization expenses with the aim to prepare the expected financial structure of the project (self – financed / external finance). Determine the components of the cash outflow associated with capital investment and the way it is distributed among the number of financial periods with the aim to ensure the continuity of the project in the first periods until operating revenues are realized. Financial study: Identifying various assumptions related with the financial expectations of the project according to which the financial performance will be assessed during future periods. Studying and analyzing the components of fixed and variable costs during the projection period with the aim to ensure that they are covered through various components of financing resources and the expected operating revenues. Studying and analyzing various components of the expected operating revenues and other revenues based upon the results of the marketing study using sales services prices and expected demand for the project's products provided to clients. Determining the discounted rate for cash outflows and inflows based upon the risk free – interests rate prevailing at the time of the feasibility study in addition to consultants assessment of the other risk components based upon the general assessment of the market at the Arab Republic of Egypt. Determining the depreciation rate for each component of capital investments (machinery, equipment, vehicles, and other transportation equipment, furniture and fixture … etc). Preparing the expected income statement for each division / section of the expenses, revenues of the expected project period during the projection period and the determining the expected profitability ratios. Preparing the expected cash flow statement for the new project during the projection period to identify the ability of the project to translate its profit into positive cash flow. Analyzing various risk components expected to affect the operations / activities of the project and the effect of such risk on the discounted rate of the study. The above risks include political, finance and administrative risks. Preparing a number of economic indicators of the project including payback period, profitability measure and internal rate of return based upon the present value of the future cash flows using the discounted rate previously determined, in addition to designing various forms of the sensitivity analysis of the project revenues with their expected increase / decrease during the projection period.