This essay focuses on discrete scenarios that include assumptions. a process of examining and evaluating possible events or scenarios

discrete scenarios that include assumptions

a accounting question and need guidance to help me study.Scenario analysis is a process of examining and evaluating possible events or scenarios that could take place in the future and predicting the various feasible results or possible outcomes.
Solve various time value of money

When performing the analysis, managers and executives at a company generate different future states of the business, the industry, and the economy. These future states will form discrete scenarios that include assumptions such as product prices, customer metrics, operating costs, inflation, interest rates, and other drivers of the business.

Managers typically start with three basic scenarios:

e steps to performing the analysis are;

1. firstly, List the assumptions you want to create scenarios for.
2. secondly, Copy and paste the list of assumptions according to the number of scenarios you wish to have.
3. thirdly, Fill in all details of each scenario.
4. further, Ensure the layout of all three scenarios is identical.
5. Create a new section called “Live Scenario.”

ATTACHMENTSMost business managers use scenario analysis. this is  during their decision-making process to find out the best-case scenario. This is  as well as worst-case scenario while anticipating profits or potential losses. Individuals can use this process when they have a big investment coming up, such as purchasing a house or setting up a business. This guide will help you understand why scenario analysis is important and how to perform it yourself.