Which of the following statements is FALSE? a. Sensitivity analysis illustrates how changes in a single variable

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Which of the following statements is FALSE?

a. Sensitivity analysis illustrates how changes in a single variable affect NPV.

b. Scenario analysis shows the level of parameters at which the NPV of a project is zero.

c. Sensitivity analysis identifies dangerous variables but ignores relationship among variables.

d. Scenario analysis examines NPV under multiple possible situations to assess the impact of cash flows that differ from initial forecasts.

Related Book For answer-question

Principles of cost accounting

ISBN: 9780840037039

15th Edition

Authors: Edward J. Vanderbeck

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Posted Date: Nov 17, 2022 05:44 AM

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Which of the following statements is FALSE? a. Sensitivity analysis illustrates how changes in a single variable

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b Scenario analysis shows the level of parameters at which the NPV of a proj... View the full answer

Principles of cost accounting

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