Financial Project Analysis



Financial Project Analysis- Mini-Case

Introduction

Peru intention for the new mine is a major commitment. For this, the sensitivity analysis and Scenario Analysis will be carried out in order to advice Peru for this project. Sensitivity analysis is carried out to account for and forecast the impact of changes of input parameters (investment costs, cash flows, hurdle rate, the level of reinvestment) of the investment project on the resulting performance. The most convenient option - it is a relative change of the input parameters (for example - all cash inflows minus 5%) and analysis of the changes in the resulting ...