8 Given the same bond specifics as Q7, the bond is a discount bond if the (annual) YTM is 8%. A. TRUE B. FALSE 9 Which of the following is a common approach to evaluate risks in capital budgeting? A. Scenario Analysis B. Sensitivity Analysis C. Monte Carlo Simulation D. All of above 10 According to the graph, the NPV is most sensitive to which of the following variables? (X-axis: % of change; Y-axis: NPV) A. Terminal value of land B. First year catfish sales C. Unit sales growth rate D. NPV exhibits the same level of sensitivity to all three variables _Terminal Value of Land Q10