As the degree of sensitivity of a project to a single variable rises,the:
A) lower the forecasting risk of the project.
B) smaller the range of possible outcomes given a pre-defined range of values for the input.
C) more attention management should place on accurately forecasting that variable.
D) lower the maximum potential value of the project.
E) lower the maximum potential loss of the project.
Correct Answer:
Verified
Q2: Fixed costs:
A)change as the quantity of output
Q3: Theoretically,the NPV is the most appropriate method
Q4: Which one of the following statements is
Q5: The accounting profit break-even point is unaffected
Q6: An analysis of what happens to the
Q7: All else equal,the contribution margin must increase
Q8: Conducting scenario analysis helps managers see the:
A)impact
Q9: Sensitivity analysis:
A)is more difficult to conduct than
Q10: An analysis of the relationship between the
Q11: Sensitivity analysis is conducted by:
A)holding all variables
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