In completing a sensitivity analysis for a capital budgeting project, which of the following would typically be varied? I $\quad $Disconnt rate
II $\quad $Future cash flows
III$\quad $ Future accrual-basis revernues ard expenses

Question

Quizplus · Accepted Answer

In a sensitivity analysis for a capital budgeting project, typically the discount rate and future cash flows are varied to assess the impact of changes in these variables on the project's viability. Future accrual-basis revenues and expenses are not usually varied because the focus is on cash flows, not accounting income.

In Completing a Sensitivity Analysis for a Capital Budgeting Project \quad

In Completing a Sensitivity Analysis for a Capital Budgeting Project $\quad$