financial modelling---- not able to perform sensitivity

kasliwalmumbai
Posts: 2
Joined: Tue Oct 09, 2012 6:09 pm

financial modelling---- not able to perform sensitivity

Postby kasliwalmumbai » Tue Oct 09, 2012 6:20 pm

:| Please help,
i had the file but can not able to attach the file.. which is in excel
I want to apply sensitivity analysis in overview tab on IRR with variable on rows is generation and in column is tariff, (Generation and tariff is given in assumption tab

Please reply---
name saurabh kasliwal
9892088322

Tags:

pankaj
Finance Junkie
Posts: 61
Joined: Fri Aug 03, 2012 11:24 am

Re: financial modelling---- not able to perform sensitivity

Postby pankaj » Fri Oct 12, 2012 6:47 pm

Hi saurabh
I am not sure whether you want to perform sensitivity or scenario analysis. If you want to see the impact of change in one variable at a time, you need to run sensitivity analysis. However, if you want to see the impact of change in two or more variable, you have to run scenario analysis.

So,to make you understand both the analysis, here i am taking a simple example related to sale and quantity. You just need to follow the steps, so that you can perform the analysis on your data.

Steps to perform sensitivity analysis as shown in image:
Suppose we want to analysis profit figure by changing only quantity (one variable).
Image

Once the sensitivity structure is ready, use the “Data Table” given under “What-If-Analysis” to calculate the profit numbers for different quantity sold.

Image

Steps to perform scenario analysis as shown in image:
Now suppose we want to analysis profit figure by changing two variables (i.e. both quantity & sales price).

First create a structure for scenario analysis by providing different sales quantity, sales price and linking the current profit number. Create a structure as shown in the image.
Image

Once the scenario structure is ready, use the “Data Table” given under “What-If-Analysis” to calculate the profit numbers for different quantity and selling price.
Image

Note: Data Table can be used for changing one or two variable(s) at a time. For changing more than two variables use solver and save the scenario(s) as show in the previous slides.

Hope this helps!!!


Return to “Open Source Financial Modeling”



cron

Disclaimer

Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to abuse@edupristine.com and we will rectify it.