The Use of Sensitivity Analysis Requires That

question 56

Multiple Choice

The use of sensitivity analysis requires that

• A)a model of a project's cash flows be developed
• B)probability distributions of the determinants of a project's cash flows be estimated
• C)the firms have access to a very large computer
• D)the firm is greatly interested in the portfolio risk reduction characteristics of a project

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Definitions:

Output

In a general context, output refers to the result or product generated as a consequence of a process, system, or activity, which can be in the form of data, goods, or services.

Storage Activities

refer to the various procedures involved in storing data or information in a digital or physical format.

Thin Client

A computer that relies on a server for processing power and provides a user interface for applications running on the server.

Full Functionality

The complete range or all features and capabilities that a software, device, or system intentionally provides to its users.