Use the Information Below to Answer the Following Question(s)

question 147

Multiple Choice

Use the information below to answer the following question(s) .Wet Water Company drills residential and commercial wells.The company is in the process of analyzing the purchase of a new drill.Information on the proposal is provided below:
Note: Other than the initial investment, cash flows are end of period.The working capital is returned at the end of the investment period.
-A "what-if" technique that examines how a result will change if the original predicted data are not achieved, or if an underlying assumption changes, is called

• A)sensitivity analysis.
• B)net present value analysis.
• C)internal rate of return analysis.
• D)adjusted rate of return analysis.
• E)payback method.

Differentiate between different probability distributions and identify situations where the normal distribution applies.

Apply the properties of the normal distribution to solve real-world problems.

Calculate and interpret z-values and percentages in the context of normal distribution.

Understand the impact of standard deviation and mean on the shape and location of the normal distribution.