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Sensitivity Analysis (Business Forecasting)
 
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This short revision video introduces and illustrates the concept of sensitivity analysis. Sensitivity analysis is a technique which allows the analysis of changes in assumptions used in forecasts. As such, it is a very useful technique for use in investment appraisal, sales and profit forecasting and lots of other quantitative aspects of business management.
Views: 32403 tutor2u
Sensitivity Analysis - Microsoft Excel 2016
 
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Example of how to build a sensitivity analysis table in Excel 2016 to evaluate how changing two inputs simultaneously will affect an output (profit). Course discount (81%): https://www.udemy.com/excel-power-user/?couponCode=YOU-TUBE ________ Here is a link to download the practice file we use in the video: https://excelpoweruser.weebly.com/blog/youtube-file-download Sensitivity analysis in Excel is one of the skills that separates the common Excel user from the power user. In this tutorial, we learn how to build a sensitivity analysis table in Excel 2016 to evaluate how changing two inputs simultaneously will affect an output (profit). I hope you enjoy this tutorial and please let me know if you would like more videos on sensitivity analysis. If you'd like to learn more, I built a business-focused Excel course on Udemy that is stripped down to the core functions for being an analyst. The objective is to get people to the power-user level quickly. The course is about 2 hours and includes things like: -completely abandoning the mouse to increase speed 3X -data manipulation & visualization -conditional statements & pivot tables Course discount (save 81%): https://www.udemy.com/excel-power-user/?couponCode=YOU-TUBE For additional tutorials about Excel, check out my Quora profile: https://www.quora.com/profile/Eric-Andrews-5
Views: 150165 Eric Andrews
Sensitivity Analysis for Financial Modeling Course | Corporate Finance Institute
 
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Sensitivity Analysis for Financial Modeling Course | Corporate Finance Institute Enroll in the full course to earn a certificate and advance your career: http://courses.corporatefinanceinstitute.com/courses/sensitivity-analysis-financial-modeling This advanced financial modeling course will take a deep dive into sensitivity analysis with focus on practical applications for professionals working in investment banking, equity research, financial planning & analysis (FP&A), and finance functions. Course agenda includes: Introduction Why perform sensitivity analysis? Model integration - Direct and Indirect methods Analyzing results Gravity sort table Tornado charts Presenting results By the end of this course, you will have a thorough grasp of how to build a robust sensitivity analysis system into your financial model. Form and function are both critical to ensure you can handle quick changes and information requests when you're working on a live transaction.
Excel's Business Tools - What-if Analysis
 
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This video demonstrated the use of some of Excel's tools designed for what-if analysis. It uses the simple example of the PMT function in a loan calculator to demostrate Goal Seek, Data Tables and Conditional Formatting.
Views: 303280 Martin Green
Excel Finance Class 89: Sensitivity Analysis For Cash Flow & NPV Calculations
 
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Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm See how to do Sensitivity Analysis and adjust a single variable for a NPV calculation. See the NPV and SLOPE function and TRANSPOSE array Functions and how to create a X Y Scatter chart.
Views: 84885 ExcelIsFun
Business Sensitivity Analysis
 
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Looking for advice on creating a sensitivity analysis in Microsoft Excel? The following video is part of the Financial Analyst Specialist certification program offered by BusinesTraining.com. http://businesstraining.com/Financial-Analyst-Certification.html
Views: 5824 BizTraining
SENSITIVITY ANALYSIS IN CAPITAL BUDGETING BY CA PAVAN KARMELE
 
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FOR PEN DRIVE CLASSES CONTACT NO. 9977223599, 9977213599 E-MAIL- [email protected]
Views: 20661 CA PAVAN KARMELE
Sensitivity Analysis in Excel
 
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How to do a sensitivity analysis in Excel with two input variables.
Views: 510502 financewithexcel
Scenario & Sensitivity Analysis Model
 
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Scenario/Sensitivity analysis is used to evaluate multiple economic and operational scenarios and assess the risk and rewards of strategic alternatives.
18 -- Cost and Profit Sensitivity Analysis
 
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An overview of cost and profit sensitivity analysis, to accompany http://www.principlesofaccounting.com Chapter 18, Cost-Volume-Profit and Business Scalability. *Check out the Classroom page to find out how to take this course for credit: http://www.principlesofaccounting.com/classroom.html
Views: 23549 Larry Walther
Introduction to Sensitivity Analysis
 
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Show an introduction to sensitivity analysis using the matrix form of the simplex method
Views: 3921 GOAL PROJECT
3.7 69 Sensitivity Analysis
 
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This video considers the usefulness of undertaking sensitivity analysis as part of the investment appraisal process.
Views: 535 Mr Evans Business
Corp Finance - module 4 - NPV sensitivity analysis
 
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An example of a simple sensitivity analysis and how it affects the NPV calculation of a project.
Views: 35677 GradSchoolTV
Spreadsheets and Models - What if analysis and sensitivity analysis
 
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Spreadsheets and Models - Module 2 What-if Analysis, Sensitivity Analysis, Scenarios, and Cash Flow To get certificate subscribe at: https://www.coursera.org/learn/wharton-quantitative-modeling/home/welcome ============================ Spreadsheets and Models https://www.youtube.com/playlist?list=PL2jykFOD1AWbT6cKeb8h5MEQvGb6-_gS0 ============================ Youtube channel: https://www.youtube.com/user/intrigano ============================ https://scsa.ge/en/online-courses/ https://www.facebook.com/cyberassociation/ Spreadsheets and Models About this course: The simple spreadsheet is one of the most powerful data analysis tools that exists, and it’s available to almost anyone. Major corporations and small businesses alike use spreadsheet models to determine where key measures of their success are now, and where they are likely to be in the future. But in order to get the most out of a spreadsheet, you have know how to use it. This course is designed to give you an introduction to basic spreadsheet tools and formulas so that you can begin harness the power of spreadsheets to map the data you have now and to predict the data you may have in the future. Through short, easy-to-follow demonstrations, you’ll learn how to use Excel or Sheets so that you can begin to build models and decision trees in future courses. Module 2 What-if Analysis, Sensitivity Analysis, Scenarios, and Cash Flow In this module, you'll move from spreadsheet to model, so you can begin to create your own models that reflect real-world events. You'll learn how to organize and lay out model elements, as well as the types of objective functions and their use. You'll also learn what-if analysis and scenarios, sensitivity analysis, and other classic models. By the end of this module, you'll be able to design a spreadsheet reflecting assumptions, decision variables, and outcomes, create a basic cashflow model, evaluate a small business opportunity, conduct what-if analysis, identify key variables using sensitivity analysis, and linear programming models and deterministic models.
Views: 191 intrigano
Managerial Accounting 6.3: Using CVP Models for Sensitivity Analysis
 
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This video describes how to use cost-volume-profit models to perform sensitivity (or what-if) analysis.
Views: 1765 KurtHeisinger
Sensitivity Analysis | Financial Reporting Decisions| US CMA Part 1| US CMA course | US CMA Exam
 
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US CMA Exam Part 1 Pro forma FS is based on some assumptions But these assumptions could change ... Series of FS with a series of what-if analyses are made What-if analysis that changes one assumption (or variable) at a time is known as sensitivity analysis. Thus with sensitivity analysis, different sets of FS are made Management can ascertain the variables which have greater impact Management is interested in EPS, additional funding etc Some variables have negligible impact on the above items So the company can focus on the most critical assumptions. https://meraskill.com/cma?utm_medium=referral&utm_source=youtube&utm_campaign=us_cma WhatsApp Now: +91 8692900017
Views: 818 Mera Skill
Lesson 6 video 1: Risk, Uncertainty and Sensitivity Analysis
 
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In this and next videos I will explain how to incorporate risk and uncertainty in the economic evaluation of projects for the purpose of investment. I will explain how you can apply the sensitivity analysis techniques to evaluate the projects in this case. There are several quantitative methods for incorporating risk and uncertainty. I will explain two of these methods: 1) Sensitivity analysis or probabilistic sensitivity analysis 2)Expected value or expected net present value
Views: 9412 F. Tayari
Lesson 4 6 Sensitivity Analysis
 
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4 Financial Evaluation and Strategy - Corporate Finance
Views: 890 Ryo Eng
Sensitivity Analysis
 
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This video is a part of Conservation Strategy Fund's collection of environmental economic lessons and was made possible thanks to the support of the Gordon and Betty Moore Foundation and the Marcia Brady Tucker Foundation. This series is for individuals who want to learn - or review - the basic economics of conservation. In this video, you will learn how to set up a sensitivity analysis within a cost-benefit analysis. To follow this series, subscribe to our YouTube channel. For more information on these and other trainings from Conservation Strategy Fund, check out: http://www.conservation-strategy.org/
Excel What-If Analysis: How to Use the Scenario Manager
 
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Views: 155646 Envato Tuts+
'What If' Sensitivity Analysis in Power BI using DAX - Advanced Technique
 
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Let's not only run scenario analysis to find binary outcomes, how about running advanced sensitivity analysis across all our 'what if' potential outcomes. There are seriously so many ways this can be implemented and execute across a range of data scenarios. Good luck implementing this one. ***** Learning Power BI? ***** All Enterprise DNA TV Resources - http://portal.enterprisedna.co/p/enterprise-dna-tv-resources FREE COURSE - Ultimate Beginners Guide To Power BI - http://portal.enterprisedna.co/p/ultimate-beginners-guide-to-power-bi FREE COURSE - Ultimate Beginners Guide To DAX - http://portal.enterprisedna.co/p/ultimate-beginners-guide-to-dax FREE - Power BI Resources - http://enterprisedna.co/power-bi-resources Learn more about Enterprise DNA - http://www.enterprisedna.co/
Views: 2880 Enterprise DNA
Sensitivity Analysis and Tornado Plots
 
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Analyzes net present value using sensitivity analysis and generates a tornado plot. Made by faculty at the University of Colorado Boulder Department of Chemical & Biological Engineering. Check out our process design playlist: http://www.youtube.com/playlist?list=PL4xAk5aclnUjEuE_fvbyEts_oBpHYcwLY
Views: 66895 LearnChemE
Lesson 6 video 2: Sensitivity Analysis
 
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In this video I will work on an example and explain the sensitivity analysis method. I will describe how we can use sensitivity analysis for project evaluation.
Views: 3859 F. Tayari
Sensitivity Analysis - Direct and Indirect Methods
 
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Sensitivity Analysis is a tool used in financial modeling to analyze how the different values of a set of independent variables affect a specific dependent variable under certain specific conditions. Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/modeling/what-is-sensitivity-analysis/
Sensitivity Analysis / Capaital Budgeting / CS Professional
 
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Buy video lectures at http://www.conferenza.in/
Views: 6656 CS Video Lectures
Financial Modelling - Sensitivity and Scenario Analysis
 
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http://www.videofinancialmodelling.com/financial-modelling-sensitivity-and-scenario-analysis/ Shows how to setup a sensitivity, scenario or what-if analysis manager in a financial model.
Sensitivity Analysis - financial management lesson no  3
 
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very simple financial model. Main feature used - conduct “What if” analysis. It adds authority to any type of financial model by testing the model across a wide set of possibilities. Managers need to be prepared for all economic conditions. Sensitivity analysis helps managers to take decisions under certain specific conditions.
Views: 630 R K Arora
Performing sensitivity analysis and wrapping up the Case Study
 
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"If you’re trying to prepare for an eventual career in finance, but are still looking to round out your knowledge of the subject, The Complete Financial Analyst Course might be a perfect fit for you.", Business Insider "A Financial Analyst Career is one of the top-paying entry-level jobs on the market.” "Even in the toughest job markets, the best candidates find great positions.", Forbes You simply have to find a way to acquire practical skills that will give you an edge over the other candidates. But how can you do that? You haven’t had the proper training, and you have never seen how analysts in large firms do their work ... Stop worrying, please! We are here to help. The Complete Financial Analyst Course is the most comprehensive, dynamic, and practical course you will find online. It covers several topics, which are fundamental for every aspiring Financial Analyst: Microsoft Excel for Beginner and Intermediate Users: Become Proficient with the world’s #1 productivity software Accounting, Financial Statements, and Financial Ratios: Making Sense of Debits and Credits, Profit and Loss statements, Balance Sheets, Liquidity, Solvency, Profitability, and Growth Financial Ratios Finance Basics: Interest Rates, Financial Math Calculations, Loan Calculations, Time Value of Money, Present and Future Value of Cash Flows Business Analysis: Understanding what drives a Business, Key Items to be Analyzed and their Meaning, the Importance of Industry Cycles, Important Drivers for the Business of Startup, Growth, Mature and Declining Companies, Important Drivers for an Industry Capital Budgeting: Decide whether a company's project is feasible from a financial perspective and be able to compare between different investment opportunities Microsoft PowerPoint for Beginner and Intermediate Users: The #1 tool for visual representation of your work, a necessary skill for every Financial Analyst As you can see, this is a complete bundle that ensures you will receive the right training for each critical aspect. Here comes the fun part! We have a challenge for you! After covering each major roadblock, you will be asked to solve a challenge. You will: Calculate a company’s sales in Excel Register its bookkeeping entries for 2015 and produce useful financial statements + calculate financial ratios Calculate a complete loan schedule for the company’s debt Analyze the company’s business performance Create a PowerPoint presentation based on the results Receive personalized feedback Receive a gift Participate in our monthly Amazon Gift Card Lottery(!) Sounds interesting, right? At the end of the challenge, you will send us the work you’ve done, and we will reply with personalized feedback. This makes for an interactive student experience that optimizes what you will learn from the course. What makes this course different from the rest of the Finance courses out there? High quality of production: HD video and animations (this isn’t a collection of boring lectures!) Knowledgeable instructor (experience in companies like Pwc and Coca-Cola) Complete training: We will cover all major topics and skills you need to become a top-class Financial Analyst Extensive Case Studies: To help you reinforce everything you’ve learned Course Challenge: Solve our Course Challenge and make this course an interactive experience Excellent support: If you don’t understand a concept or you simply want to drop us a line, you’ll receive an answer within 1 business day Dynamic: We don’t want to waste your time! The instructor keeps up a very good pace throughout the whole course Why should you consider a career as a Financial Analyst? Salary. A Financial Analyst job usually leads to a very well-paid career Promotions. Financial Analysts acquire valuable technical skills, which makes them the leading candidates for senior roles within a corporation Secure Future. There is high demand for Financial Analysts on the job market, and you won’t have to be concerned about finding a job Growth. This isn’t a boring job. Every day, you will face different challenges that will test your existing skills Please don’t forget that the course comes with Udemy’s 30-day unconditional, money-back-in-full guarantee. And why not give such a guarantee, when we are convinced the course will provide a ton of value for you? Just go ahead and subscribe to this course! If you don't acquire these skills now, you will miss an opportunity to separate yourself from the others. Don't risk your future success! Let's start learning together now! Who is the target audience? People who want a successful career in Finance Anyone who wants to learn the practical skills of Financial Analysis People who are ambitious and want to learn faster than their peers https://www.youtube.com/playlist?list=PL_H8SEcfTAXkGKvfYaBniT0boAwMkRqHt&disable_polymer=1
Views: 49 The Course
DCF Sensitivity Analysis with Excel Data Table (UPDATED)
 
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The Excel Data Table "What-if Analysis" tool is one of the most powerful, yet underutilised functions in Excel. It is a great way to deliver a high-level, informative what if analysis of a company's financial position such as its Net Present Value (NPV) from a Discounted Cash Flow (DCF) schedule. For the illustrated Excel spreadsheet, read more at http://strategizefm.com/dcf-excel-data-table/
Investment Appraisal Under Uncertainty Sensitivity Analysis (example 1)
 
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Investment Appraisal Under Uncertainty Sensitivity Analysis (example 1) - ACCA Financial Management (FM) *** Complete list of free ACCA FM lectures is available on OpenTuition.com https://opentuition.com/acca/fm/ *** Free lectures for the ACCA Financial Management (FM) Exam To benefit from this lecture, visit opentuition.com/acca to download the notes used in the lecture and access ALL free resources: ACCA lectures, tests and Ask the ACCA Tutor Forums Please go to opentuition to post questions to ACCA Tutor, we do not provide support on youtube.
Views: 2815 OpenTuition
How to create a sensitivity analysis / what if with Excel 2016
 
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This video is about how to create a sensitivity analysis / what if with Excel 2016. Or in other words "How to do a sensitivity analysis in Excel with two input variables and/or just one variable." Q: Brian from Sandy, Utah writes "Hey John, I'm working on a project where the input costs are ill defined but i'm still tasked with estimating the outcome. I want to perform the analysis AND cover my butt by showing a range of costs / results. Can you look at my spreadsheet?" A: Thanks for writing Brian! You will want to perform a sensitivity analysis. Check out the video. Sensitivity tables are perfect for helping end users understand target costs and the relationship between inputs and outputs. You can scale these to a wide range if you wish. And good idea on your approach. Always good to provide a range when dealing with estimates, especially shakey ones.
Views: 274 Excel Hacker
Sensitivity Analysis in Excel
 
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An Excel-based sensitivity analysis of Shrieves Casting Company that uses data tables and graphing.
Views: 8075 Phillip Daves
ACCA F9 Investment Appraisal Under Uncertainty - Sensitivity Analysis (example 1)
 
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ACCA F9 Investment Appraisal Under Uncertainty - Sensitivity Analysis Free lectures for the ACCA F9 Financial Management To benefit from this lecture, visit opentuition.com to download the free lectures notes used in the lecture and access all our free resources including all F9 lectures, practice tests and Ask the Tutor Forums. http://opentuition.com/acca/f9/ Please go to opentuition to post questions to ACCA F9 Tutor, we do not provide support on youtube. *** Complete list of free ACCA F9 lectures is available on http://opentuition.com/acca/f9/ ***
Views: 13908 OpenTuition
Sensitivity Analysis for Capital Budgeting
 
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A short video explaining how sensitivity analysis works, how it related to capital budgeting and how it can be used to determine capital investment decisions for businesses.
Views: 2089 Study Now
Performing sensitivity analysis
 
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What is Investment Banking Investment banking is a specific division of banking related to the creation of capital for other companies, governments and other entities. Investment banks underwrite new debt and equity securities for all types of corporations, aid in the sale of securities, and help to facilitate mergers and acquisitions, reorganizations and broker trades for both institutions and private investors. Investment banks also provide guidance to issuers regarding the issue and placement of stock. https://www.youtube.com/playlist?list=PL_H8SEcfTAXlt5mHfRTDdNoivaUagZC87
Views: 66 The Course
MS Excel: Monte Carlo Analysis - Uncertainty and Sensitivity to Change
 
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In this tutorial we learn how to perform Monte Carlo iteration analysis to account for uncertainty in variables. In this scenario, we examine uncertainty in cost, benefit and growth rate values for a project and how they affect the net present value (NPV). Excel document link: https://drive.google.com/open?id=0B_lD7FHorWGzSGhMWHh5Ukx3Vzg Check out the NEW WEBSITE: https://growyourcareer.com and look under "Downloads" UPDATED BLOG: https://arcologydesigns.blogspot.com Formulas: Cell F2: =RAND()*(D2-C2)+C2 - Generates a random value between the established parameters. Cell I2: =1/1.05^H2 - Discount factor; accounts for our preference to consume now rather than later. Cell J4: =J3*(1+$F$4) - Accounts for the growth rate of benefits at a given percent per year. Cell K2: =I2*J2 - The present value of costs and benefits after discounting. Cell T1: =AVERAGE(R3:R102) - Average NPV. Cell T2: =STDEV(R3:R102) - Standard deviation of NPV. Cell T3: =MIN(R3:R102) - Minimum NPV Cell T4: =MAX(R3:R102) - Maximum NPV Normal Distributions and Bell Curves Tutorial: http://www.youtube.com/watch?v=50kZjl-7ZaQ ________________________________________________________________________ ArcologyDesigns: http://www.arcologydesigns.com BCB Energy, LLC: http://www.bcb-energy.com For free IT sample files, go to: www.bcb-energy.com and click on "IT Training Initiative," and navigate to the Sample Files download page. ________________________________________________________________________ 100% ALL original content - photos, music, lyrics, art and more! BCB Energy, LLC and its subsidiary ArcologyDesigns are the sole creators and owners to all artwork, photographs, illustrations, graphics, logos, lyrics, texts, materials, sound recordings and musical compositions and all features of the content and materials. This includes but is not limited to the design, assortment, arrangement, atmosphere and presentation and any associated copyrights or trademarks of such content and materials.
Views: 41095 Grow Your Career
Sensitivity Analysis in Excel
 
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made with ezvid, free download at http://ezvid.com Tutorial on sensitvity analysis and tornado charts using excel and real data from NextEra.
Views: 38684 bnahir
Sensitivity Analysis Example in Power BI using DAX
 
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Learn through this advanced example how you can run sensitivity analysis in Power BI using DAX. There are so many applications for this across multiple scenarios. In this example we will be working with sales margins. ***** Learning Power BI? ***** All Enterprise DNA TV Resources - https://enterprisedna.co/Enterprise-DNA-TV-resources FREE COURSE - Ultimate Beginners Guide To Power BI - http://enterprisedna.co/ultimate-beginners-guide-to-power-bi FREE - Power BI Resources - http://enterprisedna.co/power-bi-resources Learn more about Enterprise DNA - http://www.enterprisedna.co/
Views: 2840 Enterprise DNA
Capital Budgeting: Sensitivity Analysis, Scenario Analysis, Break-Even Analysis
 
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Professor David Hillier, University of Strathclyde; Short videos for my students Check out www.david-hillier.com for my personal website.
Views: 12651 David Hillier
What is SCENARIO ANALYSIS? What does SCENARIO ANALYSIS mean? SCENARIO ANALYSIS meaning
 
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✪✪✪✪✪ WORK FROM HOME! Looking for WORKERS for simple Internet data entry JOBS. $15-20 per hour. SIGN UP here - http://jobs.theaudiopedia.com ✪✪✪✪✪ ✪✪✪✪✪ The Audiopedia Android application, INSTALL NOW - https://play.google.com/store/apps/details?id=com.wTheAudiopedia_8069473 ✪✪✪✪✪ What is SCENARIO ANALYSIS? What does SCENARIO ANALYSIS mean? SCENARIO ANALYSIS meaning - SCENARIO ANALYSIS definition - SCENARIO ANALYSIS explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. SUBSCRIBE to our Google Earth flights channel - https://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ Scenario analysis is a process of analyzing possible future events by considering alternative possible outcomes (sometimes called "alternative worlds"). Thus, scenario analysis, which is one of the main forms of projection, does not try to show one exact picture of the future. Instead, it presents several alternative future developments. Consequently, a scope of possible future outcomes is observable. Not only are the outcomes observable, also the development paths leading to the outcomes. In contrast to prognoses, the scenario analysis is not based on extrapolation of the past or the extension of past trends. It does not rely on historical data and does not expect past observations to remain valid in the future. Instead, it tries to consider possible developments and turning points, which may only be connected to the past. In short, several scenarios are fleshed out in a scenario analysis to show possible future outcomes. Each scenario normally combines optimistic, pessimistic, and more and less probable developments. However, all aspects of scenarios should be plausible. Although highly discussed, experience has shown that around three scenarios are most appropriate for further discussion and selection. More scenarios risks making the analysis overly complicated. Scenario-building is designed to allow improved decision-making by allowing consideration of outcomes and their implications. Scenario analysis can also be used to illuminate "wild cards." For example, analysis of the possibility of the earth being struck by a meteor suggests that whilst the probability is low, the damage inflicted is so high that the event is much more important (threatening) than the low probability (in any one year) alone would suggest. However, this possibility is usually disregarded by organizations using scenario analysis to develop a strategic plan since it has such overarching repercussions. In economics and finance, a financial institution might use scenario analysis to forecast several possible scenarios for the economy (e.g. rapid growth, moderate growth, slow growth) and for financial market returns (for bonds, stocks and cash) in each of those scenarios. It might consider sub-sets of each of the possibilities. It might further seek to determine correlations and assign probabilities to the scenarios (and sub-sets if any). Then it will be in a position to consider how to distribute assets between asset types (i.e. asset allocation); the institution can also calculate the scenario-weighted expected return (which figure will indicate the overall attractiveness of the financial environment). It may also perform stress testing, using adverse scenarios. Depending on the complexity of the problem, scenario analysis can be a demanding exercise. It can be difficult to foresee what the future holds (e.g. the actual future outcome may be entirely unexpected), i.e. to foresee what the scenarios are, and to assign probabilities to them; and this is true of the general forecasts never mind the implied financial market returns. The outcomes can be modeled mathematically/statistically e.g. taking account of possible variability within single scenarios as well as possible relationships between scenarios. In general, one should take care when assigning probabilities to different scenarios as this could invite a tendency to consider only the scenario with the highest probability. In politics or geopolitics, scenario analysis involves reflecting on the possible alternative paths of a social or political environment and possibly diplomatic and war risks. While there is utility in weighting hypotheses and branching potential outcomes from them, reliance on scenario analysis without reporting some parameters of measurement accuracy (standard errors, confidence intervals of estimates, metadata, standardization and coding, weighting for non-response, error in reportage, sample design, case counts, etc.) is a poor second to traditional prediction. Especially in “complex” problems, factors and assumptions do not correlate in lockstep fashion. Once a specific sensitivity is undefined, it may call the entire study into question.....
Views: 11756 The Audiopedia
Sensitivity Analysis in Term Loan Appraisal
 
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Views: 1056 CARAJACLASSES
Dynamic Scenario Analysis for Excel
 
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In this video clip, I demonstrate a technique to develop dynamic scenario analysis for Excel, in order to understand the impact on model result/s of changes to multiple input cells under multiple scenarios. The technique overcomes the limitations of the Scenario Manager which is found under the heading of "What-If Analysis" on the Excel Data Tab. The limitations of the standard Excel Scenario Manager are: 1) The routine exists outside of the Excel cells and it is a cumbersome process to change to change input cells under different scenarios in order to evaluate the impact on the model result for each scenario. 2) There is a limitation on the number of input variables (or "changing cells" as they are referred to in the Scenario Manager), which can be reached quite easily on more complex models. By using a combination of the HLOOKUP function, Data Validation (list type) and Data Tables, this technique overcomes these limitations. In order to clearly demonstrate the technique, the example I have used is deliberately simple (one would probably not use this for a simple model as the same result could be achieved by a grid structure with results at the end of each column). I have used the technique successfully for a number of more complex applications such as business valuations, project viabilities and financial budgets. In such applications, the final model result depends upon input from a number of other worksheets. The technique can also be used to assess multiple results for each scenario, with multiple input variables. For example, I have developed a financial model with 6 scenarios, 20 input variables and three results per scenario (e.g. NPV, IRR and Profitability Index). I have tested the results against separate static models for each scenario and I get the same results, so I am confident in the integrity of the technique. There are a few basic rules to follow: 1) The input variables must be values. 2) The scenario table, the data table and the model result formulae need to be located on the same worksheet. It is fine to link the input variables to other worksheets. The technique can be used for virtually any Excel model and has multiple applications. Although I believe that is preferable to commence model development with the specification of the scenario analysis, as this structures the thought process in terms of selection of key input variables and model result/s, the technique can be easily retro-fitted to existing models.
Views: 32357 Murray Saunderson
NPV and What-If Analysis | Corporate Finance | CPA Exam BEC | CMA Exam | Chp 11 p 1
 
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An investment has a positive net present value if its market value exceeds its cost. Such an investment is desirable because it creates value for its owner. The primary problem in identifying such opportunities is that most of the time we can’t actually observe the relevant market value. The possibility that we will make a bad decision because of errors in the projected cash flows is called forecasting risk (or estimation risk). Because of forecasting risk, there is the danger that we will think a project has a positive NPV when it really does not. How is this possible? It happens if we are overly optimistic about the future, and, as a result, our projected cash flows don’t realistically reflect the possible future cash flows.
Sensitivity Analysis for Financial Modeling | Investopedia Academy
 
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Sensitivity analysis is a way to predict the outcome of a decision given a certain range of variables. Take the Investopedia Academy 'Financial Modeling' course: https://bit.ly/2Gb0k8N INVESTOPEDIA ACADEMY is expert instruction from Investopedia. Self-paced, online courses that provide on-the-job skills—all from the world’s leader in finance and investing education. Website: https://academy.investopedia.com/ Facebook: https://www.facebook.com/investopedia Twitter: https://twitter.com/investopedia
Views: 6573 Investopedia Academy