Sensitivity Analysis Is a Procedure That Can Be Used in the Capital

question 58

Multiple Choice

Sensitivity analysis is a procedure that can be used in the capital budgeting process to indicate how sensitive the
Is to changes in a particular variable.

• A)probability
• B)return distribution
• C)net present value
• D)standard deviation

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Definitions:

Solve

To find a solution or explanation for a problem or question.

Technological Innovation

The process of developing and applying new technologies to create value or solve problems, leading to significant changes in society, economy, or industries.

Market Forces

The natural economic factors, including supply and demand, that influence market prices and business decisions.

Environmental Problems

Issues affecting the natural world, typically caused by human activity, that pose risks to ecosystems, biodiversity, and human well-being.