Sensitivity Analysis in CBA
A) detemines the consumer elasticity of demand for a project.
B) determines a project's ideal product volume in Stage II of the production function.
C) is a systematic process of measuring the NPV of a proposal across a range of discount rates.
D) determines a project's exact product volume where economies of scale achieve minimum average total cost.
E) recommends that a project expand in size to the point where total benefits = total costs.

Question

Quizplus · Accepted Answer

Sensitivity Analysis in CBA is a systematic process of measuring the NPV of a proposal across a range of discount rates.