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What Constitutes Sensitivity Analysis When Using Net Present Value as a Tool

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What constitutes sensitivity analysis when using net present value as a tool for selecting investment decisions?


Definitions:

Box Plot

A graphical representation of data that displays the distribution of data through their quartiles, highlighting the median, quartiles, and outliers.

Perfectly Symmetric Distribution

A type of statistical distribution where the data is uniformly distributed around the mean, showing mirror image halves on either side.

Upper Quartile

The value below which 75% of the observations in a group of data fall, marking the upper 25% of the data.

Weights

A measure of the heaviness of an object or the importance assigned to elements in a computational operation.

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