Corporate Finance
Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Chapter 7, Problem 2CQ

Sensitivity Analysis and Scenario Analysis What is the essential difference between sensitivity analysis and scenario analysis?

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What is a scenario analysis? What is it designed to show, and how does it differ froma sensitivity analysis?
What are some strengths and weaknesses of sensitivity analysis and scenario analysis?
How does the use of scenarios differ from sensitivity analysis?
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