7.2.8. Feasibility analysis

The feasibility analysis is based on the calculation of CAPM model, a 5-year FCFF NPV  and a residual value. You can learn more about feasibility analysis in the financial analysis manual.

For your convenience, the outputs for the calculation of the cost capital update immediately as you enter the values.

  1. Enter the risk-free asset expected return.
  2. Enter the Beta of the company
  3. Enter the expected market risk-premium return.
  4. Enter the average interest rate to calculate the cost of debt.
  5. Enter the weight of Equity. The weight of debt will be instantly calculated, as well as the WACC.
  6. Enter the perpetuity growth rate.
  7. Click “Save”.

Important: pre-set values were presented instantly, but you need to check them always and alter in accordance to your project

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