Change of sensitive subjects related with a firm's investment (cash flow, sell-value,sell-advice,demand of products,change of expenditure, etc.) will change Net Present Value(NPV),the technique to analysis that how much the NPV will change, is Sensitivity Analysis.
According to Besely and Brigham,” Sensitivity analysis is a technique that shows exactly how much the NPV will change in response to a given change in a input variable, other things held constant.”
More from this Section
- Annuity starting date
Annuity starting date is the date when an annuitant starts receiving
- NAIRU (nonaccelerating inflation rate of unemployment)
NAIRU (nonaccelerating inflation rate of unemployment) is the rate of unemployment when demand for labor equals supply, consequently elimination the tendency for the inflation rate to change.
- Case of Need
The drawer of a bill, and any endorser, may insert therein the name of a party to whom the holder may resort in case of need
- Export trading companies (ETCs)
Export trading companies (ETCs) is the organizational devices to aid bank customers in selling their goods abroad, particularly the products .
Stockholders is the owners of a bank who hold one or more shares of common and/or preferred stock issued by their banking corporation and elect its board of directors.
- Notary Public
Notary Public is a public officer whose chief duties are certifying deeds and documents, noting and protesting Bills of Exchange etc.
Rating refers to the credit quality of a counterparty. External ratings are given by rating agencies (ranging from AAA very safe asset to C).