Question: Considerthe following statement by a project analyst: I analyzed my project using scenarios for the base case, best case, and worst case.I computed break-evens and
Considerthe following statement by a project analyst: "I analyzed my project using scenarios for the base case, best case, and worst case.I computed break-evens and degrees of operating leverage. I did sensitivity analysis and simulation analysis. I computed NPV, IRR, payback, and PI. In the end, I have over a hundred different estimates and am more confused than ever.I would have been better off just sticking with my first estimate and going by my gutreaction."Critiquethisstatement.
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