What Is the Effect of Conducting a Sensitivity Analysis in Capital

question 20

Multiple Choice

What is the effect of conducting a sensitivity analysis in capital budgeting?

• A) It helps analysts to determine if results are particularly affected by specific estimates.
• B) It complicates the process of making a decision when there are conflicting signals.
• C) Preferences for one capital investment alternative over another will change.
• D) All of the above

---

Definitions:

Unreasonably Dangerous

Refers to a condition or aspect of a product that poses a risk of harm to consumers or users beyond what would be expected by the ordinary user.

State-Of-The-Art Defense

A legal defense used in product liability, claiming that a product is safe based on the most advanced technology available at the time of production.

Strict Liability Cases

Legal cases where the defendant can be held liable for harm without proof of negligence or intent to harm, based on inherently risky activities or defective products.

Technologically Feasible

Capable of being achieved or implemented with the current state of technical knowledge and resources.