Published : 2010-08-30

Application of Sensitivity Analysis and Scenario Analysis in Investment Appraisal

Dariusz Zarzecki



Abstract

The paper deals with the methodology and application of the sensitivity analysis and scenario analysis two well-known techniques of risk analysis applied in the evaluation of investment projects. The paper presents the essence and key definitions of these techniques, and highlights the most common mistakes and errors that have been made by investment appraisal analysts when applying both techniques. The paper gives examples of investment projects with substantial costs overruns. The final part draws some conclusions and remarks regarding the usefulness and limitations of sensitivity analysis and scenario analysis in investment appraisal. (original abstract)

Keywords:

Sensitivity analysis, Risk assessment, Investment risk, Investment project



Details

References

Statistics

Authors

Download files

PDF (Język Polski)

Citation rules

Zarzecki, D. (2010). Application of Sensitivity Analysis and Scenario Analysis in Investment Appraisal. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 29(29). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/1590

Altmetric indicators


Cited by / Share



Publisher
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

About:
Copyright 2022 by Uniwersytet WSB Merito w Poznaniu / WSB Merito University
OJS Support and Customization by LIBCOM
Platform & Workfow by OJS/PKP