Sensitivity Analysis Measures a Project's Stand-Alone Risk by Showing How

question 37

True/False

Sensitivity analysis measures a project's stand-alone risk by showing how much the project's NPV (or IRR) is affected by a small change in one of the input variables, say sales.Other things held constant, with the size of the independent variable graphed on the horizontal axis and the NPV on the vertical axis, the steeper the graph of the relationship line, the more risky the project, other things held constant.

---

Definitions:

Mayer-Salovey-Caruso Emotional Intelligence Test

A scientific test designed to measure emotional intelligence, the capability to recognize, understand, and manage our own emotions and those of others.

Performance-Based Measure

Evaluation methods that assess individuals' abilities, skills, or competencies through their actual performance or the outcomes of their actions.

Emotional Intelligence

Ability to perceive and express emotion, use emotions to facilitate thought, understand and reason with emotion, and regulate emotion.

Separating Emotion

The process of detaching emotions from a particular situation in order to approach it more logically or neutrally.