2 HSW Credit Hours

Determining a project’s Feasibility is an iterative process. Most clients typically go through three levels of analysis and each level includes multiple options. FIRST CUT – THE YELLOW PAD ESTIMATE This is the initial look at the project’s feasibility. It’s done by hand with pencil and paper. It relies on the client’s experience and local data to make assumptions. PRELIMINARY INCOME AND EXPENSE ANALYSIS Utilizing a spreadsheet allows the client to explore multiple scenarios. Here the client utilizes a spreadsheet, driven by formulas, to generate multiple scenarios, adjusting and refining key assumptions. PROFORMA – SELECTED SCENARIO LINKED TO CASH FLOW The proforma adds more detail to the Income and Expense assumptions and spreads the numbers out over time. This allows the client to assess the projects cash position from initial planning to project closeout.