Sensitivity Analysis of the Base-Case Financial Model Is a Useful

question 46

Multiple Choice

Sensitivity analysis of the Base-Case Financial Model is a useful tool for which of the following reasons?

• A)To determine how long the development process can profitably last.
• B)To understand how many technical people are needed to make the project a success.
• C)To help understand the basic trade-offs of resources committed and cash received.
• D)To identify the necessary product launch date.
• E)To set marketing and sales budgets.

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Definitions:

Positivism

a philosophical theory stating that certain ("positive") knowledge is based on natural phenomena and their properties and relations as verified by empirical sciences.

Exotic Species

are species that are introduced into a new habitat where they are not naturally found, often causing ecological disruption.

Habitat Destruction

The process by which natural habitat is rendered unable to support the species present, leading to reduced biodiversity.