Sensitivity analysis of the Base-Case Financial Model is a useful tool for which of the following reasons?
A)To determine how long the development process can profitably last.
B)To understand how many technical people are needed to make the project a success.
C)To help understand the basic trade-offs of resources committed and cash received.
D)To identify the necessary product launch date.
E)To set marketing and sales budgets.

Question

Quizplus · Accepted Answer

Sensitivity analysis helps understand the basic trade-offs of resources committed and cash received by analyzing how changes in variables affect financial outcomes. It is not directly related to determining project duration, technical staffing, product launch date, or marketing/sales budgets.

Sensitivity Analysis of the Base-Case Financial Model Is a Useful