Sensitivity Analysis Helps Determine the

question 75

Multiple Choice

Sensitivity analysis helps determine the

• A)range of possible outcomes given possible ranges for each variable.
• B)degree to which the net present value reacts to changes in a single variable.
• C)net present value given the best and the worst possible situations.
• D)degree to which a firm is reliant upon multiple economic factors changing simultaneously.
• E)ideal level of variable costs in relation to the fixed costs of a project.

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Definitions:

Conserve And Administer

The act of preserving resources or assets and managing them responsibly for current and future use.

Chapter 11

A chapter of the U.S. Bankruptcy Code allowing a business to continue operations while reorganizing its debts under court supervision.

Creditors

Individuals or entities to whom money is owed by a debtor.

Court

A governmental institution that has the authority to adjudicate legal disputes between parties and administer justice in civil, criminal, and administrative matters.