The scenario analysis technique is versatile and rich. Of all the forecasting techniques, it may be best positioned to deal with fundamental uncertainty. How is this true?
The scenario analysis technique is versatile and rich. Of all the
Scenario analysis - It is mainly used to analyse the pros and cons of organisational decisions. In scenario analysis, possible events that could take place in the future are examined and evaluated and various possible outcomes are predicted and are categorized as a best case scenario and a worst case scenario.
Best case scenario - It is the ideal scenario as it consider a situation where everything does the organisations way i.e., while considering a project, expect the lowest possible discount rate and tax rate but highest possible rate of growth.
Worst case scenario -The reverse of best case scenario is the worst case scenario, i.e., nothing goes the organisation way. Expect the highest possible discount rate and tax rate or economic recession.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
