1. A graphical presentation of the results of a sensitivity analysis might plot?

		the NPV and the percentage change in certain underlying variables.
		the NPV for various independent projects.
		the interest rates for various maturities.
		the NPV, IRR and payback for the results of evaluating sunk costs.

2. How might a railroad carryout a sensitivity analysis related to the cost of purchasing a new engine?

		Discount and evaluate all relevant sunk costs.
		a) Evaluate the impact of all incremental cash flows related to the purchase.
		Compute the NPV, IRR and payback for a project in which they build or buy everything it takes to run a railroad.
		All of the above should be completed.