Sensitivity Analysis Evaluates Projects By

question 34

Multiple Choice

Sensitivity analysis evaluates projects by:

• A) forecasting changes in interest rates that would increase financing costs.
• B) recording profitability changes while changing one variable at a time.
• C) ensuring that the project sponsor has proper incentives.
• D) testing for interrelated variables.

---

Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.