Sensitivity Analysis Is the Form of Risk Analysis

question 76

Multiple Choice

Sensitivity analysis is the form of risk analysis

• A) that examines the relationship between total firm cash flows and the NPV of a particular project.
• B) that examines the volatility of NPV.
• C) that examines the impact of key variables such as sales or costs in various combinations.
• D) that examines the impact of key variables such as sales or costs one at a time.

---

Definitions:

Non-Instantaneous

Referring to events or processes that do not happen immediately but occur over a period of time.

Email

A technique for sending digital messages over the internet or various computer networks.

Communication Tool

A device, platform, or application used to convey information or facilitate exchange between individuals or groups.

Email Policies

Guidelines and rules governing the appropriate use of email within an organization, including content, etiquette, and security.