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