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Cost-Benefit Analysis - ES fondi

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EN<br />

Sensitivity<br />

analysis<br />

• Interesting information is given by the<br />

variable’s switching value. This is the<br />

percentage change in the variable that<br />

would make the NPV change its sign<br />

(e.g. might find that if travel time savings<br />

decrease by, say, 15% then ENPV goes<br />

to zero)<br />

• However, the sensitivity analysis alone<br />

does not give any information about the<br />

probability of occurrence of a given<br />

change: need risk analysis!<br />

40

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