As there is some uncertainty in the factors that influence the financial analysis, it is necessary to take into account future risk when conducting the analysis.
For this reason, alternative trial calculation cases were set by altering the various preconditions in order to verify the propriety of the financial analysis.
Tair, prices and personal expenses are fixed as of now.
(1)Setting of Analysis Cases
Future variable factors that can be considered are a decline in the demand level, increase or decrease of construction costs, and changes in the rate of interest, etc. on borrowed funds.
1)Decline in Demand
Two alternative trial calculation cases were set by assuming a fall in demand of 10% and 20% over the originally assumed level.
2)Increase/Decrease in Construction Costs
The two cases of a 20% increase and 20% decrease in construction costs compared to the standard case were considered.
3)Borrowed Fund Conditions
The case where the rate of interest on borrowed funds increases 50% over the standard level to 7.5% per annum was considered.
4)Setting of Analysis Cases
The 18 alternative cases shown in Table 5-14 each involving different combinations of the above conditions were examined.
