If Sensitivity Analysis Indicates None of the Individual Variables Will

question 50

Multiple Choice

If sensitivity analysis indicates none of the individual variables will cause a negative NPV under pessimistic conditions, then the:

• A)project is assured to be successful.
• B)project's discount rate should be reduced.
• C)economic forecasts are possibly overly optimistic.
• D)interaction of the variables should be considered.

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Definitions:

Age Discrimination

The unfair treatment of individuals in the workplace based on their age, prohibited under various labor laws.

ADEA

The Age Discrimination in Employment Act (ADEA) is a federal law that aims to protect employees and job applicants 40 years of age and older from age-based discrimination in the workplace.

Equal Pay Act

Laws designed to eliminate differences in pay between genders by guaranteeing that both men and women are compensated equally for work of the same value.

Seniority System

An organizational practice where decisions on promotions, layoffs, and other employment actions are made based on the length of an employees’ service.