Break-even analysis is a method to analyze uncertainty and project risk by Calculating the value of an input variable (often, the number of units sold) at which a project switches from being profitable to being unprofitable. Calculating how different scenarios change the net present value. A worst-case, a most-likely, and a best-case scenario are often analyzed. Breaking a machine on the factory floor in order to understand how a company's net present value will be impacted. o Assessing the probability that the project will generate a net present value less than 0