Question
In the model below, Amy used sensitivity analysis in a cashflow projection to check how her assumptions affect her need to finance operations through credit
In the model below, Amy used sensitivity analysis in a cashflow projection to check how her assumptions affect her need to finance operations through credit or loans during the coming year.
This question has two parts. First, think about which one outcome variable is most clearly related to the need to plan for financing operations. Then identify which assumption she should make sure she has estimated correctly, since the outcome variable is most sensitive to changes in that assumption. The range B4:F6 show current best assumptions. Range B8:F18 show 10% changes in the three assumptions. Provide as your answer the assumption variable you've identified.
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