43. Sensitivity analysis measures a project's stand-alone risk by showing how much the project's NPV (or IRR) is affected by a small change in one of the input variables, say sales. Other things held constant, with the size of the independent variable graphed on the horizontal axis and the NPV on the vertical axis, the steeper the graph of the relationship line, the more risky the project, other things held constant.

Is this true or false?

17. The option to wait:

1. I. may have minimal value if a project relates to a rapidly changing technology.

2. II. is partially dependent upon the discount rate applied to the project being evaluated.

3. III. could have a negative value.

4. IV. is valued based on a project's equivalent annual cost.

a. II, III, and IV only

b. I and II only

c. II and IV only

d. I, II, and III only

e. I and III only

Thanks