How Are Sensitivity,scenario,and Break-Even Analysis Used to See the Effect

question 35

Essay

How are sensitivity,scenario,and break-even analysis used to see the effect of an error in forecasts on project profitability? Why is an overestimate of sales more serious for projects with high operating leverage?

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Definitions:

Converted

Changed or transformed in form, character, or function.

Overriding Climate

A dominant climate condition or change that has a significant impact on environmental and societal patterns over a wide area.

Temperature

A measure of the thermal energy of a system, reflecting how hot or cold an object is.

Precipitation

Any form of water, liquid or solid (rain, snow, sleet, hail), that falls from the atmosphere and reaches the ground.