Consider the Following Statement by a Project Analyst: "I Analyzed

Essay

Consider the following statement by a project analyst: "I analyzed my project using scenarios for the base case,best case,and worst case. I computed break-evens and degrees of operating leverage. I did sensitivity analysis and simulation analysis. I computed NPV,IRR,payback,AAR,and PI. In the end,I have over a hundred different estimates and am more confused than ever. I would have been better off just sticking with my first estimate and going by my gut reaction." Critique this statement.