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 Revealing the likely investment returns taking into account risk by using Elastic Cash FlowsThe robustness of projected investment returns is revealed using risk methodsMost risk assessments are focussed on the capital costs of a single project. A single spot value taken from that investment is then often used in a business case appraisal of the likely investment returns. The robustness of that case is assessed by changing key variables in a Sensitivity Analysis that uses a fixed cash flow model of the investment.What happens to the returns for variables or values not chosen for Sensitivity testing is not revealed. But we can show it. We have developed Elastic Cash Flow methods that reveal the totality of the investment returns: all values of all variables, inclusive of the effect of all risks, presented in a simple, complete, informative graph that shows clients the level of confidence they can have in the business case before them.
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