This topic contains a solution. Click here to go to the answer

Author Question: A drawback in the use of sensitivity analysis in capital budgeting decisions is that it doesn't ... (Read 124 times)

neverstopbelieb

  • Hero Member
  • *****
  • Posts: 534
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
Answer to Question 1

C

Answer to Question 2

B




neverstopbelieb

  • Member
  • Posts: 534
Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review


lindahyatt42

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

For a complete list of videos, visit our video library