Investment appraisal - using sensitivity to assess risk

Overview:

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 course 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 course ‘Investment Appraisal – Basics’

Learning Outcomes:

On completion of this course, participants will have a greater understanding of:

  • Why it is important to consider risk in the investment appraisal process
  • How we perform sensitivity analysis on net present value (NPV) calculations

CPD Points: 1

CPD Duration (hours): 1

Access: 12 months from purchase date

Price (excludes VAT): £35.00