Sensitivity Analysis Determines The

question 3

Multiple Choice

Sensitivity analysis determines the:

• A) range of possible outcomes given that most variables are reliable only within a stated range.
• B) degree to which the net present value reacts to changes in a single variable.
• C) net present value range that can be realized from a proposed project.
• D) degree to which a project relies on its initial costs.
• E) ideal ratio of variable costs to fixed costs for profit maximization.

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Definitions:

Intuitionist

A person who believes in or advocates for intuitionism, the theory that moral truths are known by intuition.

Emotional Reactions

Responses of the emotional system to stimuli or events, ranging from happiness and excitement to sadness and anger.

Moral Intuitions

The gut feelings or spontaneously formed judgments that influence our decisions on what is right or wrong without conscious reasoning.

Quick Gut Feelings

Rapid, intuitive judgments formed without conscious deliberation.