SENSITIVITIES AND LIMITATIONS
Throughout the entire process, the team should ask: Do these numbers make sense? Do these figures add up? Do the data and calculations pass the gut test? Drawing on the depth and breadth of experience around the conference table, there should be a consensus that the economic model’s assumptions and projections are realistic.
The team can and should do sensitivity tests for relevant strategic building blocks (SBBs). With Superior Paper, for instance, running Brussels for cash for the next 10 years incrementally bumped up the cash flow curve, but what if there were slightly more urgent capex needs than the team planned ...
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