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Make tornado diagram from the sensitivity analysis

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Reference no: EM133116995

Sensitivity Analysis

 

Pessimistic 

Optimistic(10% positive) 

Revenue 

2539026.00

=2539026*(1+10%)

=2792928.60

Variable cost

=2539026*40%

=1015610.40

=1015610.4*(1-10%)

=914049.36

Fixed cost

224936

=224936*(1-10%)

=202442.40

Earning (A)

1298479.6

1676436.84

Initial investment (B)

368912

368912

Working capital(C)

-336.44

-336.44

NPV=A-B-C

$929904.04

$1307861.28

Make Tornado diagram from the sensitivity analysis and explain the diagram 

Reference no: EM133116995

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