In completing a sensitivity analysis for a capital budgeting project, which of the following would typically be varied?

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In a sensitivity analysis for a capital budgeting project, the two key variables that are typically varied are I) the expected cash flows and II) the discount rate. Variation in these variables helps to identify the most significant drivers of the project's net present value (NPV) and how the NPV changes in response to changes in these variables. Option III (the project's initial cost) is not typically varied in a sensitivity analysis as it is typically assumed to be a fixed cost.

In Completing a Sensitivity Analysis for a Capital Budgeting Project