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t. NI che con tanL the tel pesent value (NPV) of a typical investment incre-whrn- the roquined rate of returm on the peoject decreases h)

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t. NI che con tanL the tel pesent value (NPV) of a typical investment incre-whrn- the roquined rate of returm on the peoject decreases h) the initial cost (or initial investen or initiail outlay) of a project increases e) the required rate of eeturn on the project inureases all cash flows frum a prosect occur daring ds last year instead of pmodically throughout the project's life. 2. You spent $1,000 last week fixing the transmission in your . Now, the brakes-, acting up and you are trying to decide whether to fix them or trade the car in for a newer model. In analyzing the brake situation, the $1,000 you spent fixing the transmission is n) cost a) opportunity 6 sunk e) fixed A projeet's operating cash flow (OCF)will increase when the depreciation expense increases sales projections are lowered c) tax rate increases d) variable costs increase Sensitivity analysis is primarily designed to determine the a) range of possible outcomes given expected ranges for multiple variables b) degree to which a project relies on financial leverage best mix of fixed and variable costs for each project d) degree to which the net present value(NPV) reacts to changes in a single variable

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