A key use of sensitivity analysis is to ________ cash flow.

Name: A key use of sensitivity analysis is to ________ cash flow.
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Question

Quizplus · Accepted Answer

Sensitivity analysis allows for a deeper understanding of the impact that changes in certain variables have on a project's budget and cash flow. By conducting sensitivity analysis, a company can better prepare and adjust its budget to account for potential changes in key variables such as sales, pricing, and costs.

A Key Use of Sensitivity Analysis Is to ________ Cash