JWI 530 Strayer University Cost Benefit Analysis Discussion Week 9 Discussion                           Collapse Forecasting and CBA Option 1 As  we are di

JWI 530 Strayer University Cost Benefit Analysis Discussion Week 9 Discussion                          
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Forecasting and CBA
Option 1
As  we are discovering, Cost Benefit Analysis is based on assumptions about  financial forecasts of future cash flows and expenses. Since the future  is unknown, getting consensus on inputs can often be the most  challenging part of running a Cost Benefit Analysis.
In  Assignment 2, we find five colleagues who each have very different  views of the future. Referencing our readings this week and drawing on  your own personal experiences, answer the following questions:

Why  do skilled professionals working in the same business often have  significantly different forecasts and views of the future?  Share an  example from your own work experience where your colleagues had very  different forecasts for the same item.
How  can we make better use of data (past performance, industry outlook,  etc.) to improve our forecasts and resolve disagreements? 
Would “sensitivity analysis” have helped Management understand the potential variations driven by changes in assumptions?
After  the forecast is complete, describe the communication process you would  use to convey results and successes to stakeholders, lenders, and  employees. 

– OR – 
Option 2
As  you’re learning in Assignment 2, a key technique in managerial  accounting/finance is the use of “Cost Benefit Analysis” to help  management make better business decisions.

Define  this approach in your own words and discuss 2 applications of this  concept in your current work environment (examples might include make  vs. buy, plant location, new product or packaging, downsizing,  acquisition/divestiture, etc.).
Discuss  a variable or assumption within the project where the data was  difficult to obtain — and what you did to develop a reasonable  assumption for the project economics.
Additionally,  share or create one example where using financial data and cost benefit  analysis that did, or could have, led to a better decision.