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Which of the following best describe the term operating leverage. Multiple Choice The degree to which a firm or project relies on fixed costs .

Which of the following best describe the term operating leverage. Multiple Choice

The degree to which a firm or project relies on fixed costs

. Investigation of what happens to NPV when only one variable is changed.

The change in costs that occurs when there is a small change in output.

Taking into account the managerial options that are implicit in a project.

The determination of what happens to NPV estimates when we ask what-if questions.

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