Sensitivity Analysis Is Used in Capital Budgeting to

question 99

Multiple Choice

Sensitivity analysis is used in capital budgeting to

• A) Estimate a project's internal rate of return (IRR).
• B) Determine the optimal contribution margin given a set of resource constraints.
• C) Determine the amount that a variable in a decision model (e.g., annual after-tax cash inflows) can change without changing the indicated decision (e.g., acceptance of a project).
• D) Simulate probabilistic customer reactions to a new product.
• E) Capture income tax consequences.

Recognize the patterns of membership demographics in special interest groups.

Comprehend the effects of current pressure group systems on political decisions.

Analyze the theoretical foundation and implications of pluralist theory in the context of interest groups.

Understand the advantages and challenges of direct marketing and Astroturf lobbying as interest group strategies.