26 The chart in Figure 11 shows a sensitivity analysis of the project. The purpose of the sensitivity analysis is to determine the extent to which a change in the project's input data affects its financial result. It identifies the critical limits of change in these data. For example, levels of revenue decrease or expenses increase that leave the NPV (net present value) positive. The more extensive these limits are, the less risky the project is. The sensitivity analysis algorithm is as follows: we change the selected parameters, reducing them by 50%, and then, increasing by 50% in 10% increments, after each change, we recalculate its economy and display the size (NPV) on the graph. As can be seen from the chart, the project NPV remains positive while the revenue decrease by 3%, and salaries increase by 2%, capital expenditures by 20%. Figure 11 Sensitivity analysis
RkJQdWJsaXNoZXIy MjcxODE=