Consider the Feasibility Study Shown in the Table

Multiple Choice

Consider the feasibility study shown in the table.You have been advised that sales revenues may be 10 percent lower and/or development costs may be 10 percent higher.Performing a sensitivity analysis,you conclude:

A) A 10 percent decrease in sales revenues would have a bigger impact on returns than a 10 percent increase in development costs
B) A 10 percent increase in development costs would have a bigger impact on returns than a 10 percent decrease in sales revenues
C) A 10 percent increase in development costs and a 10 percent decrease in sales revenues would have opposite impacts on returns,canceling each other out and having no impact on returns
D) Both factors would have such a small impact,that there is no reason to be concerned about either a 10 percent increase in development costs or a 10 percent decrease in sales revenues