SAMPLE · EXAMPLE DOCUMENT
Sample Capital Feasibility Report
An explicitly illustrative example of the report structure. Figures, scenarios, questions and hypothetical companies are samples only—not findings from a completed client engagement.
Report format
Should a company proceed with a machinery investment?
This sample shows how a proposed equipment purchase could be tested before management commits capital. Example amounts below demonstrate model structure, not actual quoted prices or a completed assignment.
Investment review summary
Assumptions to substantiate
| Driver | Example assumption | Required supporting evidence |
|---|---|---|
| Total installed cost | US$150,000 | Vendor quote, installation scope, duties, infrastructure and contingency |
| Incremental annual contribution | US$37,500 in base case | Demand evidence, saleable output, contribution margin and downtime estimates |
| Incremental working capital | US$18,750 | Stock levels, receivable days, payment terms and production ramp |
| Implementation schedule | Six-month ramp-up | Delivery milestones, commissioning plan and realistic capacity utilisation |
How uncertainty changes the picture
| Case | Annual contribution example | Simple investment recovery* |
|---|---|---|
| Upside | US$50,000 | 3.0 years |
| Base | US$37,500 | 4.0 years |
| Downside | US$22,500 | 6.7 years |
*Illustrative simple recovery on the US$150,000 installed cost only; excludes financing, tax, time value and the separate working-capital requirement. A proper project model must incorporate these and other agreed inputs.
Questions requiring a decision
- Can the forecast demand be supported by signed orders, historical conversion or a credible customer pipeline?
- Does the quoted equipment capacity reflect actual cycle time, scrap, maintenance and commissioning delays?
- Is incremental working capital affordable during the ramp-up and downside case?
- Which assumptions require engineering, tax, legal or lender verification beyond this remote scope?
Do not treat the base-case spreadsheet as sufficient approval evidence. Obtain the missing cost and demand support, complete a cash-flow model and agree the minimum conditions for investment approval.
Built around your question
Defined deliverables depend on the agreed scope.
A commissioned assignment may include a scenario workbook, assumptions register, feasibility findings and clearly identified specialist review requirements.
Start with your requirement
Turn the question into a defined scope.
Share the project, the decision or investment it supports, and any documents available. We will advise whether a focused research or feasibility assignment is appropriate.