Sensitivity Analysis

question 38

Multiple Choice

Sensitivity analysis:

• A)looks at the most reasonably optimistic and pessimistic results for a project
• B)helps identify the variable within a project that presents the greatest forecasting risk
• C)is used for projects that cannot be analysed by scenario analysis because the cash flows are unconventional
• D)is generally conducted prior to scenario analysis just to determine if the range of potential outcomes is acceptable
• E)illustrates how an increase in operating cash flow caused by changing both the revenue and the costs simultaneously will change the net present value for a project

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Definitions:

Infectious Organisms

Microbes, such as bacteria, viruses, fungi, or parasites, that can cause disease or illness when transmitted between hosts.

Iodine Products

Products containing iodine, which may be used for their antiseptic properties or in medical imaging.

Anti-infection Agents

Substances that inhibit the growth of or kill infectious organisms such as bacteria, viruses, and fungi.

Sanitization

The process of cleaning and disinfecting a surface or environment to reduce the quantity of pathogens to safe levels.