Define sensitivity analysis and scenario analysis


Define each of the following terms:

a. Cash flow; accounting income

b. Incremental cash flow; sunk cost; opportunity cost

c. Net operating working capital changes; salvage value

d. Real rate of return, rr, versus nominal rate of return, rn

e. Sensitivity analysis; scenario analysis; Monte Carlo simulation analysis

f. Risk-adjusted discount rate; project cost of capital

Solution Preview :

Prepared by a verified Expert
Finance Basics: Define sensitivity analysis and scenario analysis
Reference No:- TGS0556330

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)