8-2 Topics Covered SHow Firms Organize Their Investment Process OSome"What If Questions Sensitivity Analysis → Break Even analysis FLexibility in Capital Budgeting → Decision trees → Options Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 8- 2 Irwin/McGraw-Hill Topics Covered How Firms Organize Their Investment Process Some “What If” Questions ➔Sensitivity Analysis ➔Break Even Analysis Flexibility in Capital Budgeting ➔Decision Trees ➔Options