Sensitivity Analysis of a Project Is Conducted by

question 70

Multiple Choice

Sensitivity analysis of a project is conducted by

• A)changing the value of a single variable and computing the resulting change in the net present value.
• B)changing the value of two project variables to determine their interdependency.
• C)holding all variables to their base level and changing the project's required rate of return.
• D)assigning either the best or the worst possible value to each variable and comparing the results to those of the expected case.
• E)comparing actual values to projected values to determine which variable had the greatest variation.

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Definitions:

Risk Premium

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Securities Categories

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