The following image illustrates how the Net Present Value of a project, specifically the HomeNet example worked through in our lecture material, varies as a single underlying assumption is changed. Units Sold (000s per year) Sale Price ($ per unit) Cost of Goods ($ per unit) Question A This type of analysis is known as 35 OA. EBIT Break-Even Analysis OB. Scenario Analysis OC. Sensitivity Analysis OD. Accelerated Depreciation Analysis OE. Incremental Earnings Forecast 240 50 260 400 440 100 280 65 www Question B Based on our in-class discussion, as a result of the outcome of this analysis (from part A), which single underlying assumption deserves the most scrutiny both during the estimation process, and during the management of the project after it starts?

Ouesbon A Thes thpe of tholys se known as A. EBr Dreak Even Analsh B. Scenaro Anahis c. Senswity Analres D. Accelerated Depreciation Mrives E. incophontal Fanings Forecast Ouestion 8 manageneent of the project aher if stars? Question A management of the pegect aller is stats? A. Ner Workeng Caplal B. Number d Unts Sold C. Soloprice D. Cont of Captai E. Cost of Goods Sold Ouestion C