Because key variables are often related rather than isolated we ...

[saraeharris]

Because key variables are often related rather than isolated we often change our estimates for selected variables simultaneously when examining pro forma statements. We call this type of activity:
 
  A) ratio analysis.
  B) scenario analysis.
  C) sensitivity analysis.
  D) form analysis.

Question 2

You own an annuity due contract that will pay you 3,000 per year for 12 years.
 
  You need money to
  pay back a loan in 5 years, and you are afraid if you get the annuity payments annually you will
  spend the money and not be able to pay back your loan. You decide to sell your annuity for a lump
  sum of cash to be paid to you five years from today. If the interest rate is 8, what is the equivalent
  value of your 12-year annuity if paid in one lump sum five years from today?
  A) 22,008 B) 18,000 C) 38,880 D) 35,876

[carolinefletcherr]

Answer to Question 1

B

Answer to Question 2

D