ture or false with reason

4. Jon Dark has been asked to undertake a sensitivity analysis (as demonstrated in our lectures) for a firm with respect to a new project. He prepares his report which consists of the following information: Column 1 Variable Column 2 Column 3 Column 4 Range of NPV Amount by which Likelihood of event INPVOPT - NPV pess) it must change to described in induce zero NPV column 3 occurring $2.4m -5% 10% $1.6m +3% 12% $2.8m -7% 5% Sales Volume (SV) Variable Costs (VC) Sales Price (SP) On the basis only of the information contained in the table above that relates to sensitivity analysis, Jon Dark suggests to the firm that the answer is obvious and the best course of action given probabilities, will be to concentrate their scarce managerial resources on; (1) collecting more information about variable costs; (2) managing variable costs once the project commences