Corporate Finance
Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Chapter 7, Problem 8CQ
Summary Introduction

To discuss: The sensitivity analysis which interacts with break-even analysis.

Introduction:

The technique that is used to determine the value of a variable (independent)  influencing another variable (dependent) under some set of assumptions is termed as sensitivity analysis.

Break-even analysis refers to the point at which the company earns no profit and no loss. Simply the gain equals the loss.

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