Sensitivity analysis measures the effect of changes in a particular variable, say revenues, on a projects NPV. To perform a sensitivity analysis, all variables are fixed at their expected values except one. This one variable is then changed, often by specified percentages, and the resulting effect on NPV is noted. An Excel "Data Table" is used below to find NPV for unit sales, salvage value, and cost of capital for the project, with the deviations from base case. This produces the sensitivity analysis for WACC as shown below. NPV NPV NPV Dev from base case WACC #DIV/0! Units Sold #DIV/0! Salvage #DIV/0! -20% 8% #DIV/0! -20% 1000 38.23 -20% 20 #DIV/0! -10% 9% #DIV/0! -10% 1125 58.33 -10% 22.5 #DIV/0! 0% 10% #DIV/0! 0% 1250 86.61 0% 25 #DIV/0! 10% 11% #DIV/0! 10% 1375 114.9 10% 27.5 #DIV/0! 20% 12% #DIV/0! 20% 1500 143.18 20% 30 #DIV/0! NPV Values for Deviations from Base Case Dev from base case WACC Units Sold Salvage -20% Copy Copy Copy -10% Cells Cells Cells 0% C72 to F72 to I72 to 10% C76 F76 I76 20% Here Here Here What does this graph show you?