Question $5$

$1$ pts

Which of the following is FALSE about sensitivity analysis?

Sensitivity analysis is valid only in "make vs buy" analysis, to test assumptions.

Sensitivity analysis provides insights to the potential impacts on project returns when key assumptions are subject to uncertainty, thereby allowing management to "pressure test assumptions" before choosing amongst alternatives.

Sensitivity analysis should be performed prior to finalizing investment decisions, as part of the evaluation process.

Sensitivity analysis is a key tool in assessing uncertainty in capital budgeting decisions.

Sensitivity analysis involves assigning probabilities to various assumptions in an attempt to quantifying uncertainty.