Risk analysis

Financial Management

case of sensitivity analysis if there 10% variance and at bade case investment is 1000000 and salvage value is 100000 then in case of sensitivity analysis will there be 10% change in salvage value

creative geek

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07-Nov-23 09:59

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Answers (3)

In sensitivity analysis , we change only one variable at a time Usually, either investment, cashflows, WACC etc Rarey is sensitivity to salvage value checked - however if salvage value is % of investment, when investment value reduces the salvage value also automatically reduces

Sriram Somayajula

Admin

07-Nov-23 10:02

If salvage value is fixed amt then will it change in sensitive analysis

Thread Starter

creative geek

CA Final

★ 10K+

07-Nov-23 22:11

Thread Starter

creative geek

If salvage value is fixed amt then will it change in sensitive analysis

If they want u check for its sensivity only then

Sriram Somayajula

Admin

08-Nov-23 05:46