SNEAKER 2013 - Sensitivity, Scenario, and Simulation Analysis of Persistence Project

This assignment builds upon your work in team case A, the capital budgeting analysis of the case Sneaker 2013. Once again you are in the shoes of Michelle Rodriguez, but this time your task is to make a quantitative and qualitative assessment of the risk associated with the persistence hiking shoe project. Assignment Questions

1. Michelle would likely conclude, based on the analysis from team case A, that the persistence hiking shoe project is riskier than the sneaker 2013 running shoe project. Quantitatively, what input used in the analysis is consistent with persistence being the riskier of the two projects? What from the case narrative supports the contention that persistence is a riskier venture for New Balance?