Sensitivity Analysis 1000 0 -20% -10% 0% 10% 20% - 1000 NPV -2000 -3000 -4000...

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Sensitivity Analysis 1000 0 -20% -10% 0% 10% 20% - 1000 NPV -2000 -3000 -4000 -5000 Deviation from Base-Case Value (%) WACC Units Sold Salvage What does this graph show you? Mean - Expected NPV - ($2,001) Standard Deviation $2,108 Coefficient of Variation - Std Dev / Expected NPV - (1.05) Can be compare this with other projects scenario analysis results if typical range of CoV for company projects is 0.7 to 1.0, then would this project be considered more or less riskly

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