Explore BrainMass

Explore BrainMass

    analyzing statements

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Consider the 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, AAR, 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 gut reaction." Critique this statement.

    © BrainMass Inc. brainmass.com September 26, 2022, 6:10 pm ad1c9bdddf

    Solution Preview

    Hi there,
    <br>I disagree with this statement. While it may be easier in the beginning to go with the first estimate, in the long run, it may be less efficient and may not lead to the best decision. Also, if ...