Question: do it in excle please 30 Sensitivity Analysis 31 In contrast to scenario analysis, sensitivity analysis holds all variables except one constant. This allows us
30 Sensitivity Analysis 31 In contrast to scenario analysis, sensitivity analysis holds all variables except one constant. This allows us to see how changes in one variable affects the NPV of a project. In 23 Fixed costs NPV S 1,291,000,000 $ 1,391,000,000 36 1.491,000,000 37 1,591,000,000 30 5 1,691,000,000 39 s 1.791,000,000 $ 1,891,000,000 $ 1,991,000,000 42 5 2,091,000,000 s 2,191,000,000 44 $ 2,291,000,000 45 46 47 Graphically, the relationship between fixed costs and NPV looks like this: 49 So Of course, in our sensitivity analysis, we could be interested in how the NPV changes when two input variables change. Price and quantity sold are two variables that would 51 52 Price per Unit 53 $ 1.700.000 $ 1,800,000 $ 1,900,000 $ 2,000,000 $ 2,100,000 $ 2,200,000 $ 2,300,000 54 2,750 55 2,800 56 2,850 57 2,900 59 2,950 59 3,000 60 3,050 61 3,100 62 3,150 63 3,250 3,350 65 Units Sold 30 Sensitivity Analysis 31 In contrast to scenario analysis, sensitivity analysis holds all variables except one constant. This allows us to see how changes in one variable affects the NPV of a project. In 23 Fixed costs NPV S 1,291,000,000 $ 1,391,000,000 36 1.491,000,000 37 1,591,000,000 30 5 1,691,000,000 39 s 1.791,000,000 $ 1,891,000,000 $ 1,991,000,000 42 5 2,091,000,000 s 2,191,000,000 44 $ 2,291,000,000 45 46 47 Graphically, the relationship between fixed costs and NPV looks like this: 49 So Of course, in our sensitivity analysis, we could be interested in how the NPV changes when two input variables change. Price and quantity sold are two variables that would 51 52 Price per Unit 53 $ 1.700.000 $ 1,800,000 $ 1,900,000 $ 2,000,000 $ 2,100,000 $ 2,200,000 $ 2,300,000 54 2,750 55 2,800 56 2,850 57 2,900 59 2,950 59 3,000 60 3,050 61 3,100 62 3,150 63 3,250 3,350 65 Units Sold
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