Author Question: A drawback in the use of sensitivity analysis in capital budgeting decisions is that it doesn't ... (Read 134 times)

neverstopbelieb · **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.