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scenario or simulation or sensitivity In evaluating the robustness of our capital budgeting decision, we can conduct several different risk analyses. A (Select) analysis is

image text in transcribed"scenario" or "simulation" or "sensitivity"
In evaluating the robustness of our capital budgeting decision, we can conduct several different risk analyses. A (Select) analysis is where only one input is changed, keeping all others fixed. A Select] analysis allows more than one input to be changed at a time and allows one to estimate the probability of those changes, though it generally assumes perfect correlation among the inputs

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