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Which of the following statements is FALSE? A . Estimates of the cash flows are often subject to significant uncertainty. B . Scenario analysis considers
Which of the following statements is FALSE?
A Estimates of the cash flows are often subject to significant uncertainty.
B Scenario analysis considers the effect on NPV of changing multiple project parameters.
C Sensitivity analysis shows how the NPV varies with a change in one of the assumptions, holding the other assumptions constant.
D Scenario analysis is based upon the IRR and sensitivity analysis is based upon NPV
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