The Greater the Degree of Sensitivity of Any One Variable

Multiple Choice

The greater the degree of sensitivity of any one variable, the:

A) Less likely that variable is to cause potential losses if the estimated values are incorrect.
B) Higher the net present value will be with an increase in any of the variables.
C) Less slope the resulting net present value line will have when graphed against changes in that variable.
D) More attention management should pay to the reliability of the estimates for that variable.
E) Less important forecasting errors for that variable become.