Sensitivity Tornado: Which Uncertainty Drives the NPV?
This lesson is part of the course
In this lesson
You swing each driver from its P10 to its P90 estimate, rank the drivers by NPV swing and share of variance, and draw the tornado.
Buy the course once for $9.99 to unlock every lesson and lab, the final exam and the certificate – lifetime access, no subscription.
Lessons in this course
- Payoff Tables & Decision Criteria: Maximax, Maximin, Regret and EV Locked
- Decision Trees: Rolling Back Chance and Decision Nodes Locked
- Value of Perfect Information (EVPI) Locked
- Value of Sample Information: Bayes Update of a Market Survey Locked
- Risk Attitude & Utility: Certainty Equivalents with Exponential Utility Locked
- Monte Carlo Simulation of a Project NPV Locked
- Sensitivity Tornado: Which Uncertainty Drives the NPV? Locked
- Real Options: The Value of Waiting and of Expanding Locked