What is the essential difference between sensitivity analysis and scenario analysis?

Define scenario, sensitivity, and simulation analysis.

What is the essential difference between sensitivity analysis and scenario analysis?

a. What are the most commonly used capital budgeting procedures?
b. If NPV is conceptually the best procedure for capital budgeting, why do you think multiple measures are used in practice?

The population of a nation increased from 40 million to 60 million in 12 years. What is the yearly percentage rate of growth $p$ ?

Suppose a financial manager is quoted as saying, "Our firm uses the stand-alone principle. Because we treat projects like mini firms in our evaluation process, we include financing costs because they are relevant at the firm level." Critically evaluate this statement.

Assume a financial manager is quoted as saying, “Our firm uses the standalone principle. Because we treat projects like minifirms in our evaluation process, we include financing costs because they are relevant at the firm level.” Critically evaluate this statement.

Given the choice, would a firm prefer to use MACRS depreciation or straight-line depreciation? Why?

In the context of capital budgeting, what is an opportunity cost?

One of the less flattering interpretations of the acronym MIRR is “meaningless internal rate of return.” Why do you think this term is applied to MIRR?

One of the less flattering interpretations of the acronym MIRR is "meaningless internal rate of return." Why do you think this term is applied to MIRR?

In the previous problem, suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within $\pm$ 10 percent. Calculate the best-case and worst-case NPV figures.

What does the phrase limited liability mean in a corporate context?

Are hostile takeovers necessarily bad for firms or their investors? Explain.