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 in the model to evaluate the effect of the input factors on the expected value Kathy 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. NPW [Millions of dollars0 Base Case NPV Base Case Cost of Capital AL (Percen COST OF CA PITA This curve implies that the project is not very sensitive to changes in cost of capital. The project's NP is likely to if the cost of capital increases to 15%. Aa Aa