The Lazy Mower

Only available on StudyMode
  • Download(s) : 472
  • Published : March 28, 2011
Open Document
Text Preview
Scenario Analysis
-------------------------------------------------
Year| -------------------------------------------------
Scenario 1| ------------------------------------------------- Scenario 2| ------------------------------------------------- Scenario 3|
-------------------------------------------------
| -------------------------------------------------
15% Better| ------------------------------------------------- Stated Forecast| ------------------------------------------------- 15% Worse|
-------------------------------------------------
1| -------------------------------------------------
$ 34,500,000| ------------------------------------------------- $ 30,000,000| ------------------------------------------------- $ 25,500,000|
-------------------------------------------------
2| -------------------------------------------------
$ 39,100,000| ------------------------------------------------- $ 34,000,000| ------------------------------------------------- $ 28,900,000|
-------------------------------------------------
3| -------------------------------------------------
$ 44,620,000| ------------------------------------------------- $ 38,800,000| ------------------------------------------------- $ 32,980,000|
-------------------------------------------------
4| -------------------------------------------------
$ 41,515,000| ------------------------------------------------- $ 36,100,000| ------------------------------------------------- $ 30,685,000|
-------------------------------------------------
5| -------------------------------------------------
$ 39,330,000| ------------------------------------------------- $ 34,200,000| ------------------------------------------------- $ 29,070,000|
-------------------------------------------------
6| -------------------------------------------------
$ 39,330,000| ------------------------------------------------- $ 34,200,000| ------------------------------------------------- $ 29,070,000|
-------------------------------------------------
7| -------------------------------------------------
$ 38,783,750| ------------------------------------------------- $ 33,725,000| ------------------------------------------------- $ 28,666,250|
-------------------------------------------------
8| -------------------------------------------------
$ 36,225,000| ------------------------------------------------- $ 31,500,000| ------------------------------------------------- $ 26,775,000|
-------------------------------------------------
9| -------------------------------------------------
$ 35,707,500| ------------------------------------------------- $ 31,050,000| ------------------------------------------------- $ 26,392,500|
-------------------------------------------------
10| -------------------------------------------------
$ 35,190,000| ------------------------------------------------- $ 30,600,000| ------------------------------------------------- $ 26,010,000|

Sensitivity Analysis
Some examples of costs that could be sensitive to change would be both the fixed and variable costs associated with the project. See the chart below to compare how changes in these costs affect the NPV of the project.

NPV| FC| % change FC| % change in NPV|
| | | |
$ 45,037,905| 1,500,000| | |
$ 44,423,899| 2,000,000| 33%| -1.36%|
$ 42,702,581| 2,500,000| 67%| -5.19%|
$ 40,981,263| 3,000,000| 100%| -9.01%|
$ 39,259,945| 3,500,000| 133%| -12.83%|
$ 37,538,626| 4,000,000| 167%| -16.65%|
NPV| VC| % change VC| % change in NPV|
| | | |
$ 45,037,905| 400| | |
$ 40,122,683| 450| 12.5%| -10.9%|
$ 34,100,150| 500| 25.0%| -24.3%|
$ 28,077,616| 550|...
tracking img