Test sensitivity and distribution
See this course’s project requirements
A financial appraisal of a fictional community investment with counterfactual, incremental costs, discounted values, distribution and sensitivity.
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What to include
- A baseline/project comparison with incremental service and scope.
- An incremental resource-cost and transfer-incidence table.
- A dated present-value worksheet with real/nominal consistency.
- A deduplicated benefit inventory with valuation limits.
- A base/low net-value table and distribution note.
- A completed fictional public-spending financial appraisal.
Review and revise
Use these criteria to check your work and choose what to improve.
- All supplied records reconcile and the decision uses the named case rules.
- Calculations show units, intermediate values and a second check.
- Changed-input practice revises the affected result and identifies uncertainty.
- The final project combines six lesson records, separates fictional assumptions from current rules, and states a supported next step.
Want more background?
The idea in everyday life
This is an original fictional practice case. No account, payment, personal record or outside participation is required. Present resource costs $5,000; present monetized benefits $6,000 in base case, $4,000 in low case. Users pay $800 fees to operator; this transfer is separate from these resource totals.
A positive aggregate total does not show who gains or loses; test the assumptions that can reverse the result.
Test sensitivity and distribution — worked practice
A positive aggregate total does not show who gains or loses; test the assumptions that can reverse the result.
Use paper or a local table; label all amounts as fictional USD unless the case names another unit. Present resource costs $5,000; present monetized benefits $6,000 in base case, $4,000 in low case. Users pay $800 fees to operator; this transfer is separate from these resource totals.
Sensitivity and distribution inputs
Paste at A1.
| AInput or record | BSupplied value |
|---|---|
| Present resource cost USD | 5000 |
| Base present monetized benefit USD | 6000 |
| Low present monetized benefit USD | 4000 |
| User fee transfer USD | 800 |
| Transfer treatment | Separate distribution record |
Copy as plain text
1. Step 1: Calculate base net value
Calculate base net value.
You should see: 6000−5000=$1,000.
A positive aggregate total does not show who gains or loses; test the assumptions that can reverse the result.
2. Step 2: Calculate low-case net value
Calculate low-case net value.
You should see: 4000−5000=−$1,000.
Keep this intermediate result so the final decision can be checked.
3. Step 3: Identify the conclusion-sensitive assumption
Identify the conclusion-sensitive assumption.
You should see: Benefit level changes the sign; neither scenario is a prediction.
Keep this intermediate result so the final decision can be checked.
4. Step 4: Record distribution separately
Record distribution separately.
You should see: Users bear $800 fees and operator receives them; examine access burden even where aggregate resource net value is positive.
Keep this intermediate result so the final decision can be checked.
What to finish
A base/low net-value table and distribution note.
Watch for this
Hiding a negative sensitivity case because the base total looks favorable.
How can I tell I understand it?
Calculate public-appraisal sensitivity and record who bears transfers and benefits on the supplied changed case while preserving the stated rule and checking the final record.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
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Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
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Sources and further reading
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Source & access notes · checked 2026-10-01
Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.
Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.
Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.
Source & access notes · checked 2026-10-01
Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.
Access: Readable archived EPA Chapter 6 PDF inspected for the present-value method only; this is not current required discount-rate guidance.
Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.
Source & access notes · checked 2026-10-01
Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.
Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.
Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.
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