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:

Social Forces

Social forces are the societal factors, such as cultural norms, laws, and social structures, that influence individuals' behaviors and interactions.

Economic Forces

Factors that affect the economic environment, including market dynamics, policy decisions, and global economic trends.

Professional Discipline

A field of work or study that requires specific education, training, and a commitment to a set of standards governing the conduct and practice.

Artificial Separation

An unnecessary or manufactured division between entities or concepts that are inherently connected or interrelated.