Journal of Accounting and Management Information Systems (JAMIS)


Economic - financial elements and instruments used in the application of sensitivity analysis

9/2004 ,   P35..46

Author(s):  
Irina Daniela CIŞMAŞU


Keywords:   update rate; forecast period; economic value added

Abstract:  
The main instruments and elements used in sensitivity analysis are: the update rate; the period for which the forecast is done; the economic value added (alternative use of cash-flow) and the elements connected to its estimation; If the first 2 may be associated as elements used in sensitivity analysis and also in the elaboration and computation of the final 2 (cash-flow and economic value added), these former ones are instruments without which the fundament of the analysis results would not exist. So, the amount of space allocated to each element will be correlated with the previous statement, and the presentation will be done in the order proposed to reach the objectives from simple to complex.


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