Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Sensitivity Analysis
Tsui Ping Chung
Tsui-Ping
The goal
y The objective of Chapter 11 is to illustrate breakeven
Example 11-1
Example 11-2
Gas-guzzler solution
Current minivan
N vehicle
New
hi l
Equating these, and solving for x, we find
We use sensitivity
y analysis
y to see what
happens to project profitability when the
estimated value of study factors are
changed.
y What if expenses are 10% higher than expected
So, if gas prices drop by 10%, Jim should keep his minivan.
11
values.
y Tables
T bl andd plots
l t can provide
id quick
i k answers andd
visual cues to the effect of changes.
y A spider plot can be especially useful in sensitivity
studies.
y It can be useful to examine more than one
alternative on a plot, or to examine sensitivity of
incremental cash flows.
12
13
Figure 11-6
14
15
16
Optimistic-Most Likely-Pessimistic
y Establish optimistic (the most favorable),
favorable) most likely
likely, and
y
y
y
y
17
Example 11.7
18
19
20
21