As the Degree of Sensitivity of a Project to a Single

question 9

Multiple Choice

As the degree of sensitivity of a project to a single variable rises,the:

• A)less important the variable to the final outcome of the project.
• B)less volatile the project's net present value to that variable.
• C)greater the importance of accurately predicting the value of that variable.
• D)greater the sensitivity of the project to the other variable inputs.
• E)less volatile the project's outcome.

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Definitions:

Complements

Products or services that are used together, where the consumption or use of one increases the demand for the other.

Substitutes

Goods or services that can be used in place of each other, satisfying the same needs or desires.

Complements

Products or services that are often used together, such that demand for one increases the demand for the other.

Complements

Products or services that are commonly consumed in conjunction with one another, where a rising demand for one results in a corresponding increase in demand for the other.