The Amount of Variability of a Financial Output Caused by Different

question 5

Multiple Choice

The amount of variability of a financial output caused by different inputs can be investigated using:

• A) the NPV function
• B) a histogram of the NPV
• C) a tornado graph of NPV
• D) the value at risk (VAR)
• E) all of these choices

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Definitions:

Rotor

Any of a number of different components that rotate. In air brakes, the rotor turns with the wheel and has braking force applied to it, whereas in an alternator, the rotor provides the magnetic fields required to create current flow.

Cam Ring

An eccentric liner, usually stationary, within which mobile pump members rotate.

Non-Positive

Describes a connection or interaction where movement or slip is permitted between components, as opposed to a fixed, rigid connection.

Vane Pump

A fluid pump consisting of a slotted rotor that turns within a pump liner or cam ring. The rotor is milled with radial slots in which vanes (blades/plates) float, being thrust out by centrifugal force into the liner to form pump chambers when the rotor turns.