Sensitivity Analysis Is a Technique in Which

question 36

Multiple Choice

Sensitivity analysis is a technique in which:

• A)all key input variables are changed to their most likely values to compute a project's net present value (NPV).
• B)all of the input variables are set at their most reasonably expected values to computes a project's internal rate of return (IRR).
• C)the values of key input variables are changed to observe the resulting changes in a project's net present value (NPV) and its internal rate of return (IRR).
• D)a "bad" set and "good" set of financial circumstances are compared with a most likely, or base case, situation.
• E)key input variables are set at their worst reasonably forecasted values to compute a project's net present value (NPV).