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Question 13 Spoints Since estimates of the future incremental cash flows are often subject to...

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Question 13 Spoints Since estimates of the future incremental cash flows are often subject to significant uncertainty, it is important that we assess uncertainty in capital budgeting We can use semtity analysis and scenario analysis to assess uncertainty. The main difference between the two methods is that sensitivity analysis shows how the answer the motion only one parameter while scenario analysis considers the effect of changing multiple project parameters on the NPV True

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