Question: 6. Sensitivity and scenario analysis Different techniques for analyzing project risk require different input variables and assumptions Suppose you are using the scenario analysis technique

require different input variables and assumptions Suppose you are using the scenario

6. Sensitivity and scenario analysis Different techniques for analyzing project risk require different input variables and assumptions Suppose you are using the scenario analysis technique to evaluate project risk. You would change Aa Aa in the model to evaluate the effect of the input factors on the expected value. Zeva is a risk analyst. She is conducting a sensitivity analysis to evaluate the riskiness of a new project that her company is considering investing in. Her risk analysis report includes the sensitivity curve shown on the graph NPV (Millions of dollarsl Base Caste -NPV Base Case Price 30 -24 -18 -12 60 6 12 18 24 30 CHANGES IN SELLING PRICE rpercent

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