Principles of Corporate Finance

Sensitivity Analysis

Example - continued

NPV Possibilities (Billions Yen)

Fixed Cost 0.4 3.4 6.5

Unit Var Cost -15.0 3.4 11.1

Unit price -4.2 3.4 5.0

Market Share -10.4 3.4 17.3

Market Size 1.1 3.4 5.7

Variable Pessimistic Expected Optimistic

Range