What is the primary purpose of sensitivity analysis in cost-benefit analysis?

The primary purpose of sensitivity analysis in cost-benefit analysis (CBA) is to assess the robustness of a project's conclusions – whether the project is worthwhile – when key input variables change. Cost-benefit analysis is a systematic approach to estimating the strengths and weaknesses of alternatives. It calculates the total costs and benefits of a project or policy to determine if it’s economically justifiable. A core output of CBA is a net present value (NPV), which represents the difference between the present value of benefits and the present value of costs. If the NPV is positive, the project is generally considered beneficial; if negative, it is not. However, CBA relies on estimates, and these estimates are often uncertain. Sensitivity analysis addresses this uncertainty. Sensitivity analysi....