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Sensitivity analysis: A) provides the tradeoff between fixed and variable costs. B) provides an estimate of the most profitable situation that is reasonably expected. C)
Sensitivity analysis:
A) provides the tradeoff between fixed and variable costs.
B) provides an estimate of the most profitable situation that is reasonably expected.
C) can be conducted on any input value used in the computation of a projects NPV.
D) cannot evaluate a change in NPV related to a projects initial investment.
E) should never be conducted if the base-case scenario results in a negative NPV.
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