Topic 11 of 12 · Stand-Alone Risk: Sensitivity, Scenarios, Monte CarloStep 1 of 4
Lesson 11 of 12 · 12 min
Stand-Alone Risk: Sensitivity, Scenarios, Monte Carlo
Measure how uncertain a project's NPV is with sensitivity analysis, scenario analysis (expected NPV, σ, CV) and Monte Carlo simulation, and know what each one misses.
Inside this lesson
- Why this matters
- The core idea
- The formula
- Worked example 1: a second smoothie bar
- Worked example 2: a self-serve car wash bay
- Your turn
- Calculator steps
- Common mistakes
- Quick check
- Key takeaways
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