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 A and B.
E)Both A and C.

Question

Quizplus · Accepted Answer

Sensitivity analysis helps determine if the NPV is reliable and identifies the need for more information by testing variables individually.

Sensitivity Analysis Provides Information On