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The case on Body Shop extends our knowledge in forecasting the income Statement and Balance Sheets by introducing the idea of sensitivity analysis. What is

The case on Body Shop extends our knowledge in forecasting the income Statement and Balance Sheets by introducing the idea of sensitivity analysis.

  1. What is sensitivity analysis as introduced in Body Shop case?
  2. Why is sensitivity analysis critical in forecasting?
  3. Give an example of a circularity problem in Excel and how to solve it.

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