Question: A false sense of security can overcome a decision-maker when the net present value method is applied properly but the positive NPV results are accepted

A false sense of security can overcome a decision-maker when the net present value method is applied properly but the positive NPV results are accepted without question. Sensitivity and scenario analysis aid in the process by:

Multiple Choice

providing assurance that the most appropriate discount rate is being applied.

ensuring all estimated values are accurate.

ensuring the NPV value was calculated correctly.

providing information on a number of potential outcomes.

guaranteeing the NPV will be achieved.

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