This investment appraisal course looks at how when risk and return interact with each other NPV by itself simply focuses on return. If you ask any investor how they make their decisions, they will tell you that risk is just as important to consider alongside return. And therefore we need to balance risk and return in making investment decisions and this is where sensitivity analysis assists with those decisions.
Before purchasing this module it's assumed that you can perform NPV calculations. If you don't have this knowledge we recommend the module investment appraisal basics.
On completion of this online course, you will gain an understanding of:
- why it is important to consider risk in the investment appraisal process
- how we perform sensitivity analysis on NPV calculations.