RA 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.
Net Present Value:

Zero NPV

Tornado Plot
NPV Sensitivity Analysis

Please choose data
by clicking on input name
Download: Charts Image · Inputs CSV