Task 4.
Sensitivity analysis of results
Once a base case financial analysis is completed, key
assumptions will be varied to determine the impact of
their change on the project. Variations will be made on
the basis of a chosen set of possibilities developed in
conjunction with Government. They may include but will
not necessarily be limited to:-
reduced/increased revenue projections based upon
alternative world-wide travel demand, airline
response to increased fuel costs in terms of fleet
composition, scheduling frequency, etc.
different capital cost estimates and/or changes in
the timing of those costs over the construction
period.
different mixes of debt and public sector equity,
and different terms (e.g. interest rates, financing
period) under which debt is incurred.
different internal rates of return.
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