Importance of Sensitivity Analysis
1. It compels the decision maker to identify the variables which affect the cashflow forecasts.
2. It helps investors in understanding the investment project in totality.
3. It indicates the critical variables for which additional information may be obtained.
4. It equally helps decision maker to consider actions, which may help in strengthening the “weak spots” in the business.
5. It helps to expose inappropriate forecasts and thus guides the decision maker to concentrate on relevant variables.....https://www.sowprofessional.com/importance-of-sensitivity-analysis/