Figure 10.3 shows the relative importance of the different risk factors included in this illustrative risk analysis. Importance is expressed as an index in which the most important factor (the ACCU price) is set at 100 and the relative importance of other factors is expressed relative to that index.*
Note that some factors are positive while others are negative, reflecting the way that the factor contributes to net project benefits.
For example, an increase (decrease) in the ACCU price leads to an increase (decrease) in net benefits: there is a positive relationship between the two. In contrast, an increase (decrease) in the opportunity cost of land leads to a decrease (increase) in project net benefits: there is a negative relationship between the two.
Figure 10.3: Relative importance of different risk factors for a plantation-related project |
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