Kao, a centuries-old manufacturer of soap and toiletries, had become a successful supplier of surfactants to the magnetic media (floppy disk) industry in the late 1970s. In 1981 the firm began to study whether it could become a player in this industry by leveraging its surfactant technology. By the end of 1986, the demand for 3.5-inch floppy disks was about 500 million units in the United States, 100 million in Europe, and 50 million in Japan, with future growth rates assumed to be 40 percent per year compounded. This meant that by 1993, the global market would be approaching 3 billion disks. Of these, about one-third would be in the original equipment manufacturer (OEM) market, where industry prices were expected to be about 180 yen (or about $1.44 at the prevailing exchange rate of 125 yen to the dollar on January 1, 1993) per disk.

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from the picture :

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1. conduct a sensitivity analysis of the issues in Exhibit 8 and determine the most significant assumptions to this business case?

2. Select one of the assumptions listed in previous question and develop a way validate that assumption.