8-5 How To Handle uncertainty Sensitivity analysis-Analysis of the effects of changes in sales, costs, etc on a project Scenario Analysis- Project analysis given a particular combination of assumptions Simulation Analysis-Estimation of the probabilities of different possible outcomes Break even analysis analysis of the level of sales(or other variable) at which the company breaks even Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 8- 5 Irwin/McGraw-Hill How To Handle Uncertainty Sensitivity Analysis - Analysis of the effects of changes in sales, costs, etc. on a project. Scenario Analysis - Project analysis given a particular combination of assumptions. Simulation Analysis - Estimation of the probabilities of different possible outcomes. Break Even Analysis - Analysis of the level of sales (or other variable) at which the company breaks even