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

Author Question: Which statement best describes sensitivity analysis? (Read 82 times)

heatherbabydoll1

  • Full Member
  • ***
  • Posts: 148
Which statement best describes sensitivity analysis?

Sensitivity analysis is a method for evaluating a project that uses a number of possible values for a given variable, such as cash inflows, to assess its impact on the firm’s return in simulation analysis.


Sensitivity analysis is a statistically based behavioural approach to project analysis that applies predetermined probability distributions in the scenario approach.


Straightforward sensitivity analysis, as it is generally employed, is incomplete in that it fails to consider the range of likely values for the key input variables and the probabilities of different input values.


Sensitivity analysis is a type of risk analysis that considers both the sensitivity of NPV to changes in key variables and the likely range of variable values.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by heatherbabydoll1 on Aug 7, 2023

xinyifff

  • Full Member
  • ***
  • Posts: 159
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly




heatherbabydoll1

  • Member
  • Posts: 148
Reply 2 on: Aug 7, 2023
Gracias!


fatboyy09

  • Member
  • Posts: 358
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...

For a complete list of videos, visit our video library