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42. Sensitivity analysis: A. looks at the most reasonably optimistic and pessimistic results for a project. B. helps id

Category: Business
Subject: Finance
Due Date: 02/02/2016
Question Asked: 2016-02-02 13:23:01

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42. 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 analyzed 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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42. Sensitivity analysis: A. looks at the most reasonably optimistic and pessimistic results for a project. B. helps id

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Posted on 2016-02-02 13:23:01

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...sents the greatest forecasting risk. C. is used for projects that cannot be analyzed by scenario analysis because the cas...

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