NPV Sensitivity Analysis

This NPV calculator allows you to test sensitivity of non-risk adjusted NPV to uncertainties in inputs. If you are not familiar with NPV forecasting, please visit our NRA NPV forecast page for details. Below, we describe how you can take advantage of new features in this calculator to build a tornado plot with inputs of your choice.

Even though a single (deterministic) number for NPV is useful, it often gives a false sense of accuracy and certainty. Instead, a better approach is to look at how NPV changes with inputs. Often, a tornado plot is an easy visual tool to show an NPV range for each input range.

Notably, when an NPV range is calculated for one input range, all other inputs are held constant at their Base values.

Importantly, even though Tornado representation is a better way to look at NPV, it is still not ideal. Be mindful that the plot does not take into account inter-dependencies of inputs in the real world.

If you need help or have questions, please contact us at bioheights@pm.me. You may experience different performance depending on your device and browser. If you encounter an issue or a design flaw, please email us with a description of your issue and include information on your browser and device types.

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Disclaimer: This NRA NPV model/ calculator with the sensitivity analysis is the property of BioHeights LLC. We designed this model only for educational purposes. Importantly, this is not a financial advice. BioHeights LLC and its members are not responsible for anybody’s actions, losses, or damages resulting from using this model.

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