How to calculate sensitivity analysis if the question says that initial investment is increased or decreased by an amount say 2 million ?
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Sensitivity Analysis
10y ago#1You would calculate the change in the NPV that would result from the increase of decrease in the initial investment.
that means adding the increased amount in the initial investment and re calculating the new NPV ? Also there would be increase in the capital allowance i guess ?
10y ago#3Very true :-)
So there is quite a lot of workings necessary!
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