Published : 2010-10-30

Investment Project Sensitivity Analysis in Crisis Conditions

Jarosław Mielcarek



Abstract

It is possible to fulfill appraisal discounting criteria by investment project and occurrence of financial bludgeon with positive gross return on equity ratio at the same time in crisis conditions. Operational leverage and gross return on equity ratio functions were used as a basic tool of multifactor sensitivity analysis of the investment variant presented in the application for credit and the results demonstrated that the unfavorable and relatively small change in key factors formed situation with the occurrence of financial bludgeon and negative gross return on equity ratio at the same time. It was a base for rejecting the application for investment credit. (original abstract)

Keywords:

Sensitivity analysis, Investment, Financial crisis, Investment project, Investment loans



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Mielcarek, J. (2010). Investment Project Sensitivity Analysis in Crisis Conditions. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 30(30). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/1566

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Uniwersytet WSB Merito w Poznaniu
ul. Powstańców Wielkopolskich 5
61-895 Poznań
e-mail: journals@poznan.merito.pl
University
Uniwersytet WSB Merito w Poznaniu / WSB Merito University
ul. Powstańców Wielkopolskich 5
61-895 Poznań

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