Finance in Reply to the Research Paper

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This will also show the degree to which the project is vulnerable to potential changes on the market that would influence its main figures, including the volume of sales.

Another useful tool that can be used is a simulation. A simulation would allows us, in this particular analysis, to change some of the variables in a mathematical model that we would create and analyze the consequences of those changes.

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The sensitivity analysis has one important restriction in that it only allows one variable to be changed. With the simulation, this is no longer the case. At the same time, it is important to perform a simulation because one would be able to understand how the other elements in the mathematical model are likely to fluctuate as some of the variables change......

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