The practical application of the sensitivity analysis of investments

The paper considers the practical application of the sensitivity analysis of investments to changes in income, investment and the discount rate. Special attention is paid to calculations of the evaluation criteria of economic efficiency of investments for a specific project. The method of sensitivity analysis of investments is to calculate baseline, and then sequentially changing the values of the selected criterion by a certain percentage at constant other parameters. The purpose of the study is to establish the relationship between the main evaluation criteria of efficiency of the investment project and the value of income, investment and the discount rate. Basic research methods: method of linear approximation, the method of determining net present value, profitability index, payback period, internal rate of return, modified internal rate of return. In the process found that the increase in the value of income and less investment, the payback period is reduced, the net present value and profitability index increase. There was an inverse relationship between the rate of discounting and the net discounted income profitability index. Criteria of a positive decision on implementing the investment project. Justified the size of the discount rate by using a method that takes into account inflation, project risk and expected return. Explores the practical use of such indicators as net present value, profitability index, discounted payback period, internal rate of return, modified internal rate of return.