Sensitivity Analysis of a Project Is Conducted By

question 16

Multiple Choice

Sensitivity analysis of a project is conducted by:

• A)changing the value of a single variable and computing the resulting change in the net present value.
• B)changing the value of two project variables to determine their interdependency.
• C)holding all variables to their base level and changing the project's required rate of return.
• D)assigning either the best or the worst possible value to each variable and comparing the results to those of the base case.
• E)comparing actual values to projected values to determine which variable had the greatest variation.