Investment appraisal - Using sensitivity to assess risk

Location:
Online course
Members:
£35 + VAT

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Buy this course from 27 February 2018 to 6 March 2018 for the reduced price of £10 + VAT - a discount of 70%

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Online course

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When thinking about risk and return and how the two interact with each other. NPV (net present value) by itself simply focuses on return and a lot of organisations make the mistake of simply using return as a basis on which to make their decisions. Now if you ask any investor how they make their decisions, they will tell you that risk is just as important to consider alongside return. And therefore we need to balance risk and return in making investment decisions and this is where sensitivity analysis assists with those decisions.

Please note before purchasing this module it is assumed that you understand how to perform NPV calculations. If you do not have this knowledge then we would highly recommend you view the module 'Investment Appraisal – Basics'

What you will learn

An awareness of why it is important to consider risk in the investment appraisal process

The module will also so show you show how we perform sensitivity analysis on net present value (NPV) calculations

Who should attend

Finance staff and business managers who wish to enhance their knowledge of investment appraisal as well as its application for business.

View full event details

Content

  • Risk vs return
  • Accounting for risk
  • Sensitivity analysis
  • Sales price and sales volume
  • Sales price sensitivity and sales volume sensitivity
  • Present value of revenue
  • Discount factor sensivity
  • Project life sensitivity
  • Evaluation of sensitivity

Location

Online course

Contacts

BPP
Tel: 0330 060 3303
Email: ldicas@bpp.com

Topics

  • Business and Financial management
  • Online learning
  • Training courses

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