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What Is Meant by the Term 'Sensitivity Analysis

Question 22

Multiple Choice

What is meant by the term 'sensitivity analysis'?


A) An assessment of the effect of objective changes on the accuracy of inputs
B) A calculation of what changes are needed in inputs to create a specified change in output
C) Calculation of the dependence of NPV on levels of risk
D) A series of 'what- if' analyses to assess the effects of future changes of predicted profits and other key variables

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