sensitivity analysis
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A: Answer:
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Q: explain why payback period is not a preferred method
A: The payback period is a period in which the total costs of an investment are recovered through cash…
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Q: 1-2 years 15% 2-3 years 20% 3-4 years 30% 4-5 years 40% 5-6 years 50% 6-7 years 60% 7-8 years 70%.…
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- Explain the term sensitivity analysisExplain briefly how a sensitivity analysis is done and what the analysis is designedto show.What do you mean by sensitivity analysis?What are the setting and the constraints of the sensitivity analysis?What are the methods used in the application of sensitivity analysis?Give at least 2 examples wherein sensitivity analysis can be applied.
