Summary
A plan shows performance only under the assumptions being used. Examining risk and sensitivity helps frame the right questions; it does not guarantee profit or replace appropriate professional appraisal.
A common situation
Illustrative scenario: An investor looks at the projected returns and starts planning. The appraiser asks instead about costs, timing, and market conditions. The aim is not merely to see something attractive, but to know which risks the investor can withstand.
Three steps you can try
- Check revenue and cost assumptions.
- Test an adverse scenario.
- Identify the prerequisites before deciding.
What to remember
A plan shows performance only under the assumptions being used. Examining risk and sensitivity helps frame the right questions; it does not guarantee profit or replace appropriate professional appraisal.
This is a hypothetical illustration, not an ACC customer testimonial or project result.
