What Is the Effect of Conducting a Sensitivity Analysis in Capital

question 7

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:

Blizzard

A severe snowstorm characterized by strong winds, cold temperatures, and a large amount of snowfall, leading to reduced visibility and dangerous conditions.

Airport

A complex that facilities the arrival, departure, and maintenance of aircraft, including passenger amenities.

Flights Cancelled

Instances where scheduled air travel services are called off and not operated.

Louis Pasteur

A French biologist, microbiologist, and chemist renowned for his discoveries of the principles of vaccination, microbial fermentation, and pasteurization.