Sensitivity analysis involves examining the sensitivity of the output from an analysis, such as the NPV, to changes in individual assumptions.

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Sensitivity analysis is a technique that helps identify how changes in one input variable affect the output of a model, analysis, or decision-making process. It involves examining the sensitivity of the output to changes in individual assumptions or inputs to determine which assumptions or inputs have the greatest impact on the overall outcome. Therefore, the statement is true.

Sensitivity Analysis Involves Examining the Sensitivity of the Output from an Analysis