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In: Finance

What is the essential difference between sensitivity analysis and scenario analysis? type please 50 words at...

What is the essential difference between sensitivity analysis and scenario analysis?

type please 50 words at least

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Expert Solution

Answer - Sensitivity analysis is a forcasting technique which consider the changes in performence of the project with the effect of changes in one variable, where the other remaining constant. It identifies the effect of diffrent variables on the net present value of a project or investment.


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