QUESTION 1 Sensitivity analysis produces... A a sensitivity of the output (NPV) to a change in one variable. Q a sensitivity of the output (NPV) to a range of changes in a set of variables. m a frequency distribution of output (NPV). QUESTION 2 Scenario analysis can be conducted by A drawing random values of inputs, as per the input's probability distribution. A changing the assumption for one variable at a time. A creating a combination of inputs where the values are expected to be related i.e. (price and volume sold). QUESTION 3 Simulation analysis can best be described as... m investigation ofwhat happens to NPV when there is a marginal change in one variable. A determining the distribution of NPV estimates through iterating through a large number of scenario analyses. A the determination of what happens to NPV estimates when we ask 'what if'. QUESTION 4 What is an example of a question that would be answered as part of a scenario analysis? What is the impact on NPV of the tax rate changing by 10%. What is the most likely range of NPV outcomes? What is the impact on NPV in the worst case, where our sales drop, costs rise, and tax increases? QUESTION 5 LabraDo computed the NPV for the company's new compostable toy, estimating it for two different levels of demand. Selling 4000 units is expected to generate an NPV of $43,444, whilst 6000 units is expected to generate an NPV of $82,235. What is the sensitivity of NPV to units sold? -19.40 O 1.89 19.40 37.86