EVA Stuff Flashcards
1
Q
scenario analysis
A
what if analysis
2
Q
sensitivity analysis
A
only change 1 input variable, pinpoint
3
Q
simulation analysis
A
change multiple inputs
4
Q
problem with risk forecasting methods
A
they don’t tell you what action to take
5
Q
accounting BEP
A
how many units / $ of sales to make NI = 0, good to determine project earnings
6
Q
cash BEP
A
units / $ of sales where operating CF = 0
7
Q
financial BEP
A
units / $ of sales where NPV = 0
8
Q
operating leverage implications
A
high operating leverage means harsher consequences of poor forecasting b/c not producing enough means you get hit harder w FC
