When thinking about risk and return, and how the two interact with each other, NPV (net present value) by itself simply focuses on return and a lot of organisations make the mistake of simply using return as a basis on which to make their decisions. 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.

By completing this course you will:

  • have an awareness of why it is important to consider risk in the investment appraisal process
  • understand how we perform sensitivity analysis on net present value (NPV) calculations.

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.

Key information

  • learn at your own pace
  • help meet your annual CPD requirements
  • develop your own learning needs.

BPP is a leading provider of online technical CPD for accounting professionals.

Disclaimer: This course is available for ACCA members, you may need your ACCA membership number to complete your booking. This course and outline is provided by a third-party course provider. All course bookings are subject to the terms and conditions set by the course provider. Please see individual supplier pages for full terms and conditions. ACCA takes no liability for bookings made with third-party suppliers.