Sensitivity analysis helps you determine the:
A) Range of possible outcomes given possible ranges for every variable.
B) Degree to which the net present value reacts to changes in a single variable.
C) Net present value given the best and the worst possible situations.
D) Degree to which a project is reliant upon the fixed costs.
E) Level of variable costs in relation to the fixed costs of a project.

Question

Quizplus · Accepted Answer

Sensitivity analysis measures how the net present value (NPV) of a project is affected by changes in a single variable, helping to identify which variables have the most impact on the project's outcome.

Sensitivity Analysis Helps You Determine The