Refer to the Information in the Previous Question

question 27

Multiple Choice

Refer to the information in the previous question.You have been advised that sales revenues may be 10 percent lower and/or development costs may be 10 percent higher.Performing a sensitivity analysis,you conclude:

• A)A 10 percent decrease in sales revenues would have a bigger impact on returns than a 10 percent increase in development costs
• B)A 10 percent increase in development costs would have a bigger impact on returns than a 10 percent decrease in sales revenues
• C)A 10 percent increase in development costs and a 10 percent decrease in sales revenues would have opposite impacts on returns,canceling each other out and having no impact on returns
• D)Both factors would have such a small impact,that there is no reason to be concerned about either a 10 percent increase in development costs or a 10 percent decrease in sales revenues

---

Definitions:

Impeachable Offense

Actions or misconduct by a public official that are considered severe enough to justify impeachment, a formal charge of wrongdoing.

Pentagon Papers

A classified report that detailed U.S. government involvement in Vietnam from 1945 to 1967, leaked to the public in 1971, revealing previously undisclosed details about the conflict.

Defense Department

The part of the United States federal government responsible for coordinating and supervising all agencies and functions concerning national security and the military.

Leak

The release of confidential or secret information to the public, often by an anonymous source.