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Select the Benefits to a Company of Using Sensitivity Analysis

Question 25

Multiple Choice

11ec37eb_8bab_63de_97b9_cd36936cf705__00 Select the benefits to a company of using sensitivity analysis in investment appraisal. (Select all the true statements.)


A) Sensitivity analysis enables a company to determine the effect of changes to variables on the planned outcome.
B) Sensitivity analysis enables a company to assess the risk associated with a project.
C) Sensitivity analysis enables identification of fixed costs that are of special significance.
D) Sensitivity analysis enables risk management strategies to be put in place to focus on those variables of special significance.

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