2. The data table will recalculate Profit for each combination of price and unit cost. Select cells G5 and H5, left click the box in the bottom right, drag it to the right until the figure 200,00 displays, release the mouse. Excel applies the equation in DTL to all the variables within the table. However, we are not sure what would be the market risk premium. Step 3 - Name this scenario "Original" and enter the cell references of all cells with constant values that you may consider changing in other scenarios (maximum 32 cells). The formula for sensitivity analysis is basically a financial model in excel where the analyst is required to identify the key variables for the output formula and then assess the output based on different combinations of the independent variables. Click in F5, type =D9, press enter. We can now observe the monthly payment in multiple scenarios (e.g., taking out a larger loan at a smaller interest rate) and be confident that the values are valid. A quick reference guide is available at the end of this document. We'll analyze how the equal monthly payment changes with the change in loan amount and the interest rate per.
