PC Scenario Analysis and Sensitivity Analysis Discussion Questions
Question Description
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I’m working on a business discussion question and need the explanation and answer to help me learn.
Respond to the following discussion questions.
1. What is the difference between scenario analysis and sensitivity analysis? How might you use each during the capital budgeting process?
2. What is the concept of operating leverage? Describe a scenario where a high degree of operating leverage would be positive for a company and one in which it would be negative.
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