What is sensitivity analysis?
Answer to relevant QuestionsWhy does the weighted average cost of capital affect investment capability and risk tolerance? “Capital budgets are neither absolute limits on investment nor automatically affected by project ranking on purely quantitative grounds” Do you agree or disagree with this statement? Explain. Luster Electronics Company is analyzing two capital projects, project A and project B. Each has an initial capital cost of $12,000, and the weighted average cost of capital for both projects is 12%. The projected annual cash ...What are planning assumptions? Why are they important? Are the methods and techniques used for valuing a small business the same as those for a large business? Why?
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