Draft Detailed Project Report

Technology Centre Systems Program – Draft DPR for New TC at Rohtak
Sensitivity analysis
Sensitivity analysis of Project IRR has been carried out with respect to the key project parameters.
► Project cost
► Revenue from Training
► Revenue from production
► Revenue from Consultancy
The project IRR is most sensitive to changes in training revenue, followed by changes in project
cost, production revenue and consultancy revenue.
Training forms majority of revenue for the TC followed by production and consultancy.
5 percent increase/decrease in training revenue increases / decreases the project IRR by about
1.17%.
5 percent increase/decrease in project cost decreases/ increases the project IRR by about 0.53%
5 percent increase/decrease in production revenue increases / decreases the project IRR by about
0.36%.
Consulting being the lowest contributor to revenue has the lowest impact on project sensitivity. 5
percent increase/decrease in consultancy revenue increases / decreases the project IRR by about
0.20%.
Increase in Project
cost
-5%
Table 52: Sensitivity of IRR
Construction
period (15
Months)
5.5%
Increase in
Consultancy
revenue
-5%
Construction
period (15
Months)10.9%
4.7%
0% 4.9% 0% 4.9%
5% 4.4% 5% 5.1%
10% 3.9% 10% 5.3%
Increase in
Training revenue
-7.5%
2.7%
Increase in -10%
4.2%
-5%
3.5%
Production
revenue
-5%
4.6%
0% 4.9% 0% 4.9%
5% 6.2% 5% 5.3%
10% 7.4% 10% 5.6%
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