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.

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Definitions:

ATMs

Automated Teller Machines, electronic banking outlets that allow people to complete transactions without the need for a branch representative.

Frito-Lay

An American subsidiary of PepsiCo that manufactures and markets snack foods such as chips.

Harley Davidson

An American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.