Sensitivity Analysis Is a Technique in Which

Multiple Choice

Sensitivity analysis is a technique in which:

A) all key input variables are changed to their most likely values to compute a project's net present value (NPV) .
B) all of the input variables are set at their most reasonably expected values to computes a project's internal rate of return (IRR) .
C) the values of key input variables are changed to observe the resulting changes in a project's net present value (NPV) and its internal rate of return (IRR) .
D) a "bad" set and "good" set of financial circumstances are compared with a most likely, or base case, situation.
E) key input variables are set at their worst reasonably forecasted values to compute a project's net present value (NPV) .