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Sensitivity Analysis of a Project Is Conducted By

Question 16

Multiple Choice

Sensitivity analysis of a project is conducted by:


A) changing the value of a single variable and computing the resulting change in the net present value.
B) changing the value of two project variables to determine their interdependency.
C) holding all variables to their base level and changing the project's required rate of return.
D) assigning either the best or the worst possible value to each variable and comparing the results to those of the base case.
E) comparing actual values to projected values to determine which variable had the greatest variation.

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