True or False

10. For investor owned businesses, a capital investment financial analysis identifies projects expected to contribute to owner (shareholder) wealth

true or false

12. In a through capital budgeting analysis, once a project cost of capital has been assigned that incorporates any differential project risk, the analyst should return the risk analysis to ensure that the new (adjusted) discount rate does not change the result

true or false

13. (choose the nest answer) Which of the following statements about project risk analysis techniques is most correct?

a. sensitivity analysis considers the joint (combined) impact of changes in uncertain input variables on profitability

b. scenario analysis considers the joint (combined) impact of changes in an uncertain input variables on profitability

c. scenario analysis, as it is done in practice, usually involves four scenarios

d. dark-cloud analysis considers the impact of abandoning the project before the end of its useful life

e. in a sensitivity analysis graph, the steeper the plot lines, the lower the risk