answersLogoWhite

0

Scenario Analysis: What happens to the NPV unde different cash flow scenarios? this analysis has: 3 dimensions to measure 1. Best case: High revenues, low cost 2. Worst case: low revenues, high cost 3. Base case: calculation with the given data Measure of the range of possible outcomes Best and Worts are not necessarily probable, but they can still be possible Sensitivity Analysis: What happnes to NPV when we vary one variable at a time? This is a subset of scenario analysis where we are looking at the effect of speciic variables on NPV The greater the volatility on NPV in relation to a specific variable, the larger the forecasting risk associated with that variable, and the more attention we want to pay to its estimation i.e. number of scenario analysis done, let's say 1,000 of different NPV, and the empirical distribution made us better off. Because we have observe the how volatile is the NPV.

User Avatar

Wiki User

16y ago

What else can I help you with?

Related Questions

Difference between single parameter sensitivity and multiple parameter sensitivity?

Difference between single parameter sensitivity and multiple parameter sensitivity is that in multiple parameter sensitivity,defined parameters cannot be measured with a high degree of accuracy in the field or in the laboratory.


What is the difference between heat and product analysis in steel Why should this be?

what is the difference between product analysis and heat analysis


Whats the difference between accounts analysis and engineering analysis?

what is difference between accounts and engineering


What is the difference between heat analysis and product analysis?

manufacturing process of steel plates difference between heat and product analysis ?


What is the manufacturing difference between product analysis and heat analysis?

manufacturing process of steel plates difference between heat and product analysis ?


The difference between a trend analysis and a comparative analysis?

Difference between e-resuming system of bdjobs and phrotom alo.com


What is the difference between functional cost analysis and engineering cost analysis?

ffsdsd


Difference between dynamic analysis and static analysis of mechanical design?

k


What is the difference between anova and aov?

There is no difference.AOV = Analysis of VarianceANOVA = Analysis of Variance.


What is the Difference between value analysis and value chain analysis?

no different it's the same


What is the difference between Analytics and analysis?

18+4


What is the difference between initial investigation and analysis?

j