Describe the types of assumptions used in sensitivity and scenario analysis

1.Describe the types of assumptions used in sensitivity and scenario analysis.
2.Describe how the options to expand or abandon a project are integrated in the capital budgeting process.
3.Explain how decision trees are used to value investment alternatives.
4.Explain the effects of sunk costs and opportunity costs in deciding whether to accept a project.
5.Review the financial considerations a company should make before investing in a project.
6.Understand how net working capital, depreciation and interest influence the decision to buy or not to buy.
7.Explain how inflation and interest rates affect the capital budgeting process.

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