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You are conducting a sensitivity analysis on the cash flows of Exxon Mobil Corporation for the fiscal year ended December 31, 2023, based on changes

You are conducting a sensitivity analysis on the cash flows of Exxon Mobil Corporation for the fiscal year ended December 31, 2023, based on changes in key input variables.

Requirements:

  1. Base case operating cash flow: $20 billion
  2. Base case capital expenditures: $10 billion
  3. Base case dividends paid: $5 billion
  4. Best-case scenario: Operating cash flow increases by 10%, capital expenditures decrease by 5%, and dividends paid remain unchanged.
  5. Worst-case scenario: Operating cash flow decreases by 5%, capital expenditures increase by 10%, and dividends paid increase by 20%.

Based on the above scenarios, analyze the sensitivity of cash flows for Exxon Mobil Corporation and discuss potential implications for financial planning and decision-making.

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