Sensitivity analysis looks at varying key estimates to see how much safety margin we have before the decision we are making will change. For example, based on a selling price of £5 a project is worthwhile but if it drops by more than 10% to below £4.50, then the project should be rejected. Ultimately Sensitivity analysis is used to understand how changes to the inputs in a financial model will affect the result. It will allow the company to see which inputs are very sensitive to change for instance inputs with safety margins under 10% are very sensitive to the project and should be reviewed before a decision is finalised.