Sensitivity Analysis
Introduction to Sensitivity Analysis
Sensitivity analysis helps assess the potential impact of changes in sales values and costs on your project’s profitability. 00:00
Adjusting Sale Value and Cost Scales
Change the increments or decrements for sale values and costs to see how different scenarios affect project outcomes. 31
Impact on Profit per Unit
Analyze how changes in sales value and costs influence profit per unit, which provides insight into the project’s financial viability. 92
Effect on Development Margin
The analysis also shows how development margins change under different scenarios, helping to identify the project’s financial resilience. 155
Evaluating Return on Equity
The analysis considers the effect of different scenarios on the return on equity, especially when leveraging financing. 186
Worst-Case Scenario Planning
Use the sensitivity analysis to understand worst-case scenarios, ensuring the project can withstand potential adverse conditions. 279