Sensitivity analysis provides information on:
A) whether the NPV should be trusted and may provide a false sense of security if all NPVs are positive.
B) the need for additional information as it tests each variable in isolation.
C) the degree of difficulty in changing multiple variables together.
D) Both whether the NPV should be trusted and may provide a false sense of security if all NPVs are positive; and the need for additional information as it tests each variable in isolation.
E) Both whether the NPV should be trusted and may provide a false sense of security if all NPVs are positive; and the degree of difficulty in changing multiple variables together.

Question

Quizplus · Accepted Answer

Sensitivity analysis provides information on whether the NPV should be trusted and may provide a false sense of security if all NPVs are positive, as well as the need for additional information as it tests each variable in isolation. It doesn't provide information on the degree of difficulty in changing multiple variables together, so option E is incorrect.

Sensitivity Analysis Provides Information On