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Exam 3 review · Lesson 38 of 45

Stand-Alone Risk: Sensitivity, Scenarios, Monte Carlo

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Exam 3 review · Lesson 38 of 45 · 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

  1. Why this matters
  2. The core idea
  3. The formula
  4. Worked example 1: a second smoothie bar
  5. Worked example 2: a self-serve car wash bay
  6. Your turn
  7. Calculator steps
  8. Common mistakes
  9. Quick check
  10. Key takeaways

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