Differences between sensitivity and scenario analysis

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Reference no: EM131328436

1. In what sense could one argue that if managers make decisions using breakeven analysis, they are not maximizing shareholder wealth? How can breakeven analysis be modified to solve this problem?

2. Explain the differences between sensitivity analysis and scenario analysis. Offer an argument for the proposition that scenario analysis offers a more realistic picture of a project's risk than sensitivity analysis does.

Reference no: EM131328436

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