The setting up of a new private school in Malta : a feasibility study

Abstract

Purpose: The reason that this study was conducted is that schools are given more importance nowadays, and parents are willing to pay the school fees for their children to receive an education of the highest quality. Demand is increasingly growing. This study’s objective is to evaluate whether the development of a new independent school in Malta is feasible and financially viable. Design: This study looks at all the capital expenditure needed to build the school premises, which was discussed in several meetings and interviews held. Furthermore, the study delves into all the operating income and expenditure that the school receives and suffers. Eventually the study delves into several investment appraisal techniques on the findings discussed as well as four other scenarios. During this process a sensitivity analysis was conducted. This all led to the study’s conclusion and the fulfillment of the study’s objectives and research questions. Findings: The findings of this study were eventually used to conduct the investment appraisal techniques which in the end resulted in the decision as to whether the setting up of a new private school in Malta is feasible or not. Conclusions: In the early years of the study, the base case scenario presented a loss due to the Capital expenditure spent and the very low demand, however this changed as the demand grew, enabling the school to present itself with a profit in the later years of the study which eventually lead to a positive result, making the project attainable. Implications: This study shows that the investment discussed in the study is attainable and can also be undertaken.