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

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