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Scenario Analysis

Question 59

Multiple Choice

Scenario analysis:


A) determines the impact a $1 change in sales has on a project's internal rate of return.
B) determines which variable has the greatest impact on a project's net present value.
C) helps determine the reasonable range of expectations for a project's anticipated outcome.
D) evaluates a project's net present value while sensitivity analysis evaluates a project's internal rate of return.
E) determines the absolute worst and absolute best outcome that could ever occur.

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