Use the figure for the question(s)below.
-A consumer good company is developing a new brand of organic toothpaste.Above is the sensitivity analysis for this product.The assumptions regarding which parameter should be scrutinized most carefully in the estimation process?

Question

Use the figure for the question(s)below. 
-A consumer good company is developing a new brand of organic toothpaste.Above is the sensitivity analysis for this product.The assumptions regarding which parameter should be scrutinized most carefully in the estimation process?

Quizplus · Accepted Answer

The sensitivity analysis shows that the variable with the highest impact on the net present value (NPV) of the project is the cost of goods sold. Therefore, this parameter should be scrutinized most carefully in the estimation process to ensure that accurate cost estimates are used in the calculation of the NPV.

Use the Figure for the Question(s)below