In a Sensitivity Graph That Examines the Present Worth of a Project

question 20

Multiple Choice

In a sensitivity graph that examines the present worth of a project, the slope of a line shows

• A)how sensitive a project's benefit-cost ratio is to changes in its inputs: the steeper, the more sensitive.
• B)how sensitive a project's PW is to changes in its inputs: the steeper, the more sensitive.
• C)how sensitive a project's benefit-cost ratio is to changes in its inputs: the flatter, the more sensitive.
• D)how sensitive a project's PW is to changes in its inputs: the flatter, the more sensitive.
• E)how sensitive the project's IRR is to changes in its inputs: the flatter, the more sensitive.

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Definitions:

Offeree

An offeree is a person or entity to whom an offer is made, typically in the context of contracting or other legal agreements.

Employer's Promise

An assurance or guarantee given by an employer to an employee, outlining specific commitments regarding job security, working conditions, or benefits.

Bonus

Additional compensation given to employees as a reward for their performance or as an incentive.

Bilateral Contract

A legal agreement in which each of the parties to the contract makes a promise to the other or undertakes a certain obligation.