Sensitivity Analysis Is Conducted By

question 71

Multiple Choice

Sensitivity analysis is conducted by:

• A) holding all variables at their base level and changing the required rate of return assigned to a project.
• B) changing the value of two variables to determine their interdependency.
• C) changing the value of a single variable and computing the resulting change in the current value of a project.
• D) assigning either the best or the worst possible value to every variable and comparing the results to those achieved by the base case.
• E) managers after a project has been implemented to determine how each variable relates to the level of output realized.