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Consider the Following Statement by a Project Analyst: "I Analyzed

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Essay

Consider the following statement by a project analyst: "I analyzed my project using scenarios for the base case,best case,and worst case. I computed break-evens and degrees of operating leverage. I did sensitivity analysis and simulation analysis. I computed NPV,IRR,payback,AAR,and PI. In the end,I have over a hundred different estimates and am more confused than ever. I would have been better off just sticking with my first estimate and going by my gut reaction." Critique this statement.


Definitions:

Researchers

Individuals who conduct systematic investigations to establish facts or principles or to collect information on a subject.

Emotional Intelligence

The ability to recognize, understand, manage, and reason with emotions in oneself and others.

IQ of Managers

Describes the intelligence quotient, a measure of cognitive abilities, of individuals in managerial positions.

Constructive Activities

Actions or endeavors that are positively productive and contribute to the accomplishment of goals or improvement.

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