Sensitivity analysis evaluates the change in projects NPV with respect to:

a-One variable changing while holding the other variables constant.

b-Changes in underlying assumptions

c-Different economic conditions

d-Many variable changing at the same time

2-Using profitability index, the preference rule for ranking projects is:

a-The higher the sunk cost, the more desirable the project.

b-The higher the profitability index, the more desirable the project.

c-The lower the profitability index, the more desirable the project.

d-The lower the sunk cost, the more desirable the project.