Question: Assume that you graph the changes in net present value against the changes in the value of a single variable used in a project. The
Assume that you graph the changes in net present value against the changes in the value of a single variable used in a project. The smoother the resulting function/line illustrates the
| a. | the higher the forecasting risk or sensitivity associated with that variable | |
| b. | the higher the fixed costs utilized by the project | |
| c. | the less sensitive NPV is to change in that variable | |
| d. | the wider the range of total outcomes possible from accepting a proposed project |
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