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Business Analysis: Microsoft by Conrad Carlberg

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13. Creating a Sensitivity Analysis for a Business Case

A business case is a snapshot of a set of assumptions about a business activity that your company is considering. Some of these assumptions can be made confidently; others are little more than educated guesses. A well-prepared business case recognizes that at least some of its inputs are bound to be inaccurate.

The business case should document the logic behind the numbers and test how sensitive its results are to variations in its input assumptions. Suppose a business case assumes, among other things, that a company can obtain a ...

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