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Manegerial Finance

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How would companies benefit from running sensitivity analysis? How do they determine the most relevant items to evaluate?

Sensitivity analysis prepares the business to tackle the situation if the estimated projection of a particular project doesn’t operate according to the plan. Sensitivity analysis takes various estimates into account. Because the future always has something unexpected, through sensitivity analysis we can minimize the disturbance. It helps us know the change in NPV when we change the values of the input variables. By knowing the outcome for various level of inputs we can decide whether to make an investment.
There are independent and dependent variables.The dependent varioables outcomes
DQ-2 WEEK 4 Arizonaeconomic indicators

Arizonaindicators.org
Industrial composition
Find and economic indicator correlation to your business/industry etc
The industry I chose is a venture capital industry and the economic indicator with highest correlation is innovation. There are venture capitalists that identify the firms that have potential for high growth. The investment tends to be both high risk and high return. But the firms that venture capitalists invest in are not yet ready to go public. Innovation has the highest correlation with respect to the investment in the new firm by venture capitalists. Innovation requires creativity and ability and the measure used to rate a regions ability to innovate is the number of patents granted. By developing things or technology that is new or which helps address a problem in the society receives much more interest from the venture capitalists. R&D is the center of innovation strategy and R&D funding is also another factor that drives

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