1. What is the difference between scenario analysis and sensitivity analysis? How might you use each during the capital budgeting process?
2. What is the concept of operating leverage? Describe a scenario where a high degree of operating leverage would be positive for a company and one in which it would be negative.
DB POSTING REMINDERS:
Please remember the initial post should be written as early in the week as possible, and the peer responses are due by Saturday evening.
When you make your initial post, please fully answer the question and make substantive responses – i.e. at least 400 words that really dive into the topic and show that you’ve read the text and done research to support your opinions.
Apply appropriate examples that illustrate your points – feel free to bring your workplace experiences into the discussion. It helps us all learn when we can relate our past workplace experiences to what we’re learning here in the discussions.
You must reply substantively (at least 50 words that welcomes further discussion) at least three times to your classmates and/or your instructor.
You may not use any quoted material even if sources are cited. Please make sure all posts are written entirely in your own words.