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Sensitivity analysis

This topic has 5 replies, 2 voices, and was last updated 6 years ago by John Moffat.

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December 8, 2019 at 2:31 pm #555481
aadil1234
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Sir can you tell me how to calculate the sensitivity analysis of investment cost?
December 9, 2019 at 7:47 am #555522
John Moffat
Keymaster
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It is the NPV expressed as a % of the PV of the flows related to the initial investment, which depend on the question but are likely to be the initial investment itself and the tax savings on the capital allowances.
December 10, 2019 at 5:43 pm #555617
aadil1234
Member
- Topics: 75
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Sir you mean NPV divided by initial investment multitiply by 100?
December 11, 2019 at 7:59 am #555644
John Moffat
Keymaster
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Yes!
December 11, 2019 at 8:28 am #555652
aadil1234
Member
- Topics: 75
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Thank you Sir 🙂
December 11, 2019 at 2:46 pm #555677
John Moffat
Keymaster
- Topics: 57
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You are welcome 🙂
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