Question: List some variables that affect Net Present Value (NPV). (b) Explain the use of sensitivity analysis to check the effect of variation from plan of
List some variables that affect Net Present Value (NPV). (b) Explain the use of sensitivity analysis to check the effect of variation from plan of a single variable on a project NPV. (c) Explain how sensitivity analysis can be generalised to check the riskiness of NPV when several variables may simultaneously be varying from what was assumed in the plan. How would you present the results of (c) to an audience
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
