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Question 11 1 pts Which of the following statements correctly describes features of the sensitivity analysis technique as discussed in lectures? [please note in the
Question 11 1 pts Which of the following statements correctly describes features of the sensitivity analysis technique as discussed in lectures? [please note in the answers below that NPVOPT = NPV(OPT) and NPVPES = NPV(PES)] It does not require any knowledge about the probability distribution for each variable. It requires us to perform DCF calculations while varying each variable in turn by a fixed % amount from their expected values, where this difference is constant for each variable. It suggests that managerial attention should be directed to the variable that has the smallest difference between NPV(OPT) and NPV(PES). None of the other answers is correct More than one of the other answers is correct Question 11 1 pts Which of the following statements correctly describes features of the sensitivity analysis technique as discussed in lectures? [please note in the answers below that NPVOPT = NPV(OPT) and NPVPES = NPV(PES)] It does not require any knowledge about the probability distribution for each variable. It requires us to perform DCF calculations while varying each variable in turn by a fixed % amount from their expected values, where this difference is constant for each variable. It suggests that managerial attention should be directed to the variable that has the smallest difference between NPV(OPT) and NPV(PES). None of the other answers is correct More than one of the other answers is correct
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