Sensitivity Analysis or What-If-Analysis for NPV

[@robertwoodman738]

This was the clearest explanation of how to conduct a sensitivity analysis on NPV that I have watched. Thanks so much for making this video!

[@nadianafisat2918]

Thank you ma for this tutorial,u really broke things down more than my Lecture did at school,this is the best class I ever seen on this topic

[@karpagamqtcorner8764]

I'm glad that this video helped you Nadia Nafisat !

[@sanjugowdas1804]

Thanks mam it's clear explanation to understand students.

[@akshatsharma4015]

Thank you ma'am the explanation was so good

[@nishantkumarsingh5516]

Amazing explanation ma'am, loved it. You explained this concept so beautiful and I wasn't struggling even for a moment 7

[@chetanaanuraj2424]

Awesome mam, I really like your way of explaining with lot of Patience. Even though I understood the concept in your class. Still I came to KZbin to listen your explanation mam. We really need such kind of informative and interesting numerical problems in KZbin as well.

[@karpagamqtcorner8764]

Chetana Anuraj, I'm glad that you have watched this video.So nice of you. Will post more such videos

[@Deeraka]

Great ❤

[@AshishKumar-qg3db]

Very nicely explained 💥

[@karpagamqtcorner8764]

Glad you liked it!

[@manojitkaran7029]

Excellent

[@karpagamqtcorner8764]

Thank you! Cheers!

[@joyvera8749]

Thank you ❤

[@khadijaabubakar7414]

Oh i get it thnks 🎉❤

[@MustafaKamleh]

why did you keep the sales fixed, while you mentioned in first table that it changes from 15 in pessimistic to 21 in optimistic. You kept it 18 in all three events. Can you explain why? thank you

[@karpagamqtcorner8764]

Hi Mustafa, We have 4 variables under study 1. Investment 2. Sales 3. Variable cost 4. Fixed cost. I'm interested to find how sensitive the NPV, if we change one variable (let us say in this case Investment). Once we have identified, then we can change to the next variable (Sales). We will study pessimistic sales impact on the NPV, Optimistic sales impact on the NPV and realistic sales impact on the NPV (keeping the other variables of the study constant). Hope this helps. If you need the excel file, please reply with your mail ID.

[@khadijaabubakar7414]

Hello madam why dd you add back depreciation..... Kindly clarify this one

[@tashdesilva2278]

Because here we are finding cash flows , depreciation is not a cash flow so we add back it which is deducted when calculating profit and taxes.

[@fahminarahman2070]

It was such a nice video mam. I have a question? Would you please tell me the variable cost as a percentage of sales - 66.67% how you got this?