Difference between revisions of "Sensitivity analysis"

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(Created page with "Sensitivity analysis is an analysis, which result indicates exactly how much net present value will change in response to a given change in an input variable, other things...")
 
(Definitions)
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 
:[[Sensitivity analysis]]. Indicates exactly how much net present value will change in response to a given change in an input variable, other things held constant. Sensitivity analysis is sometimes called “what if” analysis because it answers this type of question.
 
:[[Sensitivity analysis]]. Indicates exactly how much net present value will change in response to a given change in an input variable, other things held constant. Sensitivity analysis is sometimes called “what if” analysis because it answers this type of question.
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According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]],
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:[[Sensitivity analysis]]. Percentage change in [[NPV]] resulting from a given percentage change in an input variable, other things held constant.
  
 
==Related concepts==
 
==Related concepts==

Revision as of 04:19, 2 November 2019

Sensitivity analysis is an analysis, which result indicates exactly how much net present value will change in response to a given change in an input variable, other things held constant. Sensitivity analysis is sometimes called “what if” analysis because it answers this type of question.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Sensitivity analysis. Indicates exactly how much net present value will change in response to a given change in an input variable, other things held constant. Sensitivity analysis is sometimes called “what if” analysis because it answers this type of question.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Sensitivity analysis. Percentage change in NPV resulting from a given percentage change in an input variable, other things held constant.

Related concepts

Related lectures