Theoretically,the NPV Is the Most Appropriate Method to Determine the Acceptability

Multiple Choice

Theoretically,the NPV is the most appropriate method to determine the acceptability of a project. A false sense of security can overcome the decision-maker when the procedure is applied properly but the positive NPV results are accepted blindly. Sensitivity and scenario analysis aid in the process by:

A) changing the underlying assumptions on which the decision is based.
B) highlights the areas where more and better data are needed.
C) providing a picture of how an event can affect the calculations.
D) All of these.
E) None of these.