Question
Regarding sensitivity analysis, which of the following is true? Multiple Choice A Sensitivity analysis on the sales quantity generally indicates that the net present value
Regarding sensitivity analysis, which of the following is true?
Multiple Choice
A Sensitivity analysis on the sales quantity generally indicates that the net present value of a project is inversely related to the quantity of units produced and sold.
B The amount of forecast risk in any one variable can be ascertained using sensitivity analysis.
C) A project that has positive internal rates of return under the base, best, and worst case scenarios is a project that will produce a positive net present value under all three of those conditions.
D The most common approach to sensitivity analysis is to simultaneously vary sales in an upward direction as the estimated costs are varied in a downward direction to estimate the most optimistic outcome that can be reasonably expected.
E When measuring the sensitivity of the sales price, the estimated variable cost per unit used in the analysis should be changed in direct proportion to the change in the estimated level of sales.
which one pls tell fast!!
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