128ckm 1501 F0158816688957F70 3. Sensitivity and scenario analysis Different techniques for analyzing project risk require different input variables and assumptions The procedure in which one of the elements (or variables) affecting a project's expected value is changed to study ts Aa Aa of the elements (or variables) affecting a project's expected value is changed to study ks effect on the expected value is called analysis Taliba is a risk analyst. She is conducting a sensitivity analysis to evaluate company is considering investing in. Her risk analysis report includes the sensitivity curve shown on the graph the riskiness of a new project that her NPV IMiliens of dollars 30-34-18 -1212 18 260 PRICE IPercent CHANGES IN SELLING This curve implies that the project is very sensiltive to changes in the price of the product. The project's NPV is likely to become negative if the price for which the product can be sold decreases by Along with the sensitivity analysis, Taliba is including a scenarlo analysis for the project in her report, giving the probability of the project generating a negative NPV. Her report includes the following information about the scenario analysis: Probability Data for z 0.030.06 Data Collected 0.09 Outcome NPV (Pi)