Question 1 ( --/1) -- / 1 The result of sensitivity analysis is to know the effect of variable factors on the NPW and thus the viability of a project. () () Question 2 -- / 1 You should never estimate the cash flow for future years. () () Question 3 (--/1 How can a company use sensitivity analysis to know which variable are important? The magnitude of the slope (over percent change) is directly related to a factor's importance. The number of variables a factor depends on is directly related to its importance. The amount of effort put into estimating a factor's value is directly related to its importance. The magnitude of the cost or revenue is directly related to its performance. Question 4 It is impossible for the calculated internal rate of return to be greater than MARR and net present worth to be negative for an investment project. () ibi Question 1 ( --/1) -- / 1 The result of sensitivity analysis is to know the effect of variable factors on the NPW and thus the viability of a project. () () Question 2 -- / 1 You should never estimate the cash flow for future years. () () Question 3 (--/1 How can a company use sensitivity analysis to know which variable are important? The magnitude of the slope (over percent change) is directly related to a factor's importance. The number of variables a factor depends on is directly related to its importance. The amount of effort put into estimating a factor's value is directly related to its importance. The magnitude of the cost or revenue is directly related to its performance. Question 4 It is impossible for the calculated internal rate of return to be greater than MARR and net present worth to be negative for an investment project. () ibi