This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A drawback in the use of sensitivity analysis in capital budgeting decisions is that it doesn't ... (Read 143 times)

neverstopbelieb

  • Hero Member
  • *****
  • Posts: 534
on: Jul 1, 2018
A drawback in the use of sensitivity analysis in capital budgeting decisions is that it doesn't
 
  A) permit evaluating alternative outcomes.
  B) provide estimates of net present values.
  C) assign probability values to outcomes.
  D) consider different possible rates of discount.

Question 2

The use of sensitivity analysis will generally result in
 
  A) the calculation of a certainty equivalent NPV.
  B) the calculation of a best case, a base case and a worst case.
  C) the calculation of the coefficient of variation.
  D) the calculation of the probability of the maximum profit.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

janieazgirl

  • Sr. Member
  • ****
  • Posts: 300
Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

B


neverstopbelieb

  • Member
  • Posts: 534
Reply 2 on: Jul 1, 2018
Excellent

sultana.d

  • Member
  • Posts: 320
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Culture and sensitivity Culture and sensitivity
Tumor marker analysis of a patient with no evidence of disease monitored for tumor recurrence. The ... Tumor marker analysis of a patient with no evidence of disease monitored for tumor recurrence. The ...
Kinetic analysis of spliceosome assembly Kinetic analysis of spliceosome assembly
Analysis of the dihybrid crosses Analysis of the dihybrid crosses
Models for Genetic Analysis of Behavior Models for Genetic Analysis of Behavior
QTL Analysis of Tomato Weight in Backcross Progeny QTL Analysis of Tomato Weight in Backcross Progeny
Video: Pressure Flow Model Animation

For a complete list of videos, visit our video library