Asked by Jaime Alexander on Jun 24, 2024
Verified
Using the Tornado Chart tool,determine the assumption that has the least impact on the NPV.
A) Market size
B) R&D
C) Test Drives
D) Time of cash flow
Tornado Chart
A graphical method used to display the sensitivity of a result to changes in its input variables, usually in the form of a horizontal bar chart.
NPV
Net Present Value, a calculation used to assess the profitability of an investment, representing the difference between the present value of cash inflows and outflows over a period of time.
Market Size
An estimation of the total volume of goods or services that is available for purchase within a specific market.
- Comprehend the use and implementation of the Tornado Chart for sensitivity analysis in Crystal Ball.
Verified Answer
Learning Objectives
- Comprehend the use and implementation of the Tornado Chart for sensitivity analysis in Crystal Ball.
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