An analysis in which a firm would like to know the effect of a price change on the NPV of a project, holding all other variables and forecasts constant, is one type of sensitivity analysis.

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Sensitivity analysis involves testing the impact of changes in one variable on the outcome of a project while keeping all other variables constant. In this case, the firm is interested in knowing how a change in price affects the NPV, while assuming that all other variables and forecasts remain the same.

An Analysis in Which a Firm Would Like to Know