Project Risk Evaluation Methods - Sensitivity Analysis
Year: 2009
Type: article
Abstract: The viability of investment projects is based on IRR and NPV criteria. In the economic analysis of the projects there are some aspects of project feasibility which may require sensitivity and risk analysis. Sensitivity analysis estimates the effect on achieving project objectives if certain assumptions materialize or not. This paper presents the purpose of sensitivity analysis and the steps that must be followed in order to perform a sensitivity analysis as well as a numeric example.
Authors: Mirela Iloiu, Diana Csiminga
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1500400051