Sensitivity Analysis Is Based On

question 14

Multiple Choice

Sensitivity analysis is based on:

• A)varying a single variable and measuring the resulting change in the NPV of a project.
• B)applying differing discount rates to a project's cash flows and measuring the effect on the NPV.
• C)expanding and contracting the number of years for a project to determine the optimal project length.
• D)the best, worst, and most expected situations.
• E)various states of the economy and the probability of each state occurring.

---

Definitions:

Freudian Theory

A psychological theory developed by Sigmund Freud, which emphasizes unconscious processes and the importance of childhood experiences in shaping personality and behavior.

Id

In psychoanalytic theory, the part of the mind that is responsible for the instinctual impulses and demands for immediate satisfaction of basic needs.

Impulses

Sudden, involuntary inclinations to act without premeditation, often driven by internal or external stimuli.

Sullivan's Theory

A psychological theory developed by Harry Stack Sullivan that emphasizes the importance of interpersonal relationships and the social aspects of psychiatric disorders.