The Slope of a Sensitivity Graph of -5 with Respect

question 28

Multiple Choice

The slope of a sensitivity graph of -5 with respect to operating costs means

• A)a 1% increase in operating costs leads to a 5% decrease in PW of the project.
• B)a 1% increase in operating costs leads to a $5 decrease in PW of the project.
• C)a $1 increase in operating costs leads to a 5% decrease in PW of the project.
• D)a $1 increase in operating costs leads to a $5 decrease in PW of the project.
• E)a 1% increase in operating costs leads to a 5% increase in PW of the project.

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