Hello, Guest   |   Login here

16. Risk Analysis

The Investment Appraisal above is carried out assuming that every sales target, unit prices and cost reduction scenarios are able to be reached, so to produce the expected target of NPV, IRR, Payback and Breakeven (B/E).

However, the targets may not be achieved due to the risk that sales, price and cost do not happen due to: i) efforts made by competitors through better products or cheaper prices or better marketing and promotion; ii) lack of efficient marketing and promotion; 3) economic recession which depresses purchasing power; iv) initial price too high, which deters potential buyers; v) wrongly targeted market segment caused by a wrong segment being addressed which do not generate any sales; and vi) a resistance of suppliers to lower

Subscribe today and learn the fundamentals

Hello,
It seems you don't have access to the exclusive content of The Course.

In order to gain access to the content of The Course you will have to register with EntreprenAble. Membership with EntreprenAble will also give you access to our interactive Business Game and Accounting Simulations.

Subscribe today and get:

  • Unlimited website access to The Course
  • Optimized view for Desktop, Tablet and Mobile devices
  • Free 7-day, no obligation trial - normally £15
Start free trial
Test-drive the system for free