Multiple Choice
If a 20% reduction in a project's forecast sales would still result in a positive NPV,then sensitivity analysis would suggest:
A) that there is little point in further market research.
B) that a more detailed sales forecast is required.
C) that the initial sales forecasts were inflated.
D) that more of the company's overhead costs can be allocated to this product.
Correct Answer:

Verified
Correct Answer:
Verified
Q88: Which one of the following variables would
Q89: A firm has a tract of timber.The
Q90: When the level of fixed costs is
Q91: Scenario analysis allows managers to look at
Q92: The opportunity to abandon a project loses
Q94: Soft capital rationing may be beneficial to
Q95: A firm with 60% of sales going
Q96: The inputs that are most worth refining
Q97: The greater the DOL,the greater the protection
Q98: The option for a firm to expand