Given the Following Sensitivity Analysis, Which of the Following Statements

question 190

Multiple Choice

Given the following sensitivity analysis, which of the following statements is true?

• A)Only an annual net cash flow of $700,000 will allow for a positive residual value.
• B)The total amount to be invested is $3,050,000.
• C)The annual net cash flow necessary to generate a positive net present value is above $700,000.
• D)The investment is not justified if the annual net cash flow will be $500,000 or $600,000.

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Definitions:

Specific Factors

Components or elements that are unique to a particular situation, environment, or condition, affecting outcomes in a distinct way.

Learning Organizations

Organizations that actively cultivate, facilitate, and encourage the continuous learning and development of their members to adapt and transform.

Profitable

Generating a financial gain or benefit, typically measured as the difference between revenue and expenses.

Learning Organizations

Companies or entities that prioritize, facilitate, and continuously adapt through the learning of its members, promoting innovation and responsiveness to changing environments.