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Contingency Planning:
Once the events are evaluated and categorised, and the levels of risk attaching to them have established.
The organisation should then commence planning to reduce or eliminate them. Obviously, those events categorised within the high / extreme category would take precedence over those categorised within other areas.
Examples of contingency planning could be:
a. Consider the time line below that shows periodic cash flows and interest rates per period. Interest rate/year 0 1 2 3 4 5 6 7 8 9 Time 2,500 -4,000 6,000 -3,700 Cash flows
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What is the meaning of Breakeven point?
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