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What Are What-If Analysis, Break-Even Analysis, and Sensitivity Analysis? Please

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Essay

What are what-if analysis, break-even analysis, and sensitivity analysis? Please include an example of a situation using each type of analysis (one example each).


Definitions:

Pre-money Valuation

The valuation of a company prior to investment or financing, which determines how much of the company an investor can purchase for a specific amount of money.

VC

Venture Capital; financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

Company

An organization or entity engaged in commercial, industrial, or professional activities.

Investor

An individual or organization that allocates capital to investments with the expectation of achieving a financial return.

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