B Consider the feasibility study shown in the table. You have been advised that sales revenues may be 10 percent lower and/or development costs may be 10 percent higher. Performing a sensitivity analysis, you conclude which of the following? :05 Total sales revenue Less: Development cost Less: Land asking price Potential gross profit Less: Administration, legal, commissions, etc. Potential net profit Multiple Choice $ 10,000,000 6,000,000 1,000,000 $ 3,000,000 1,500,000 $ 1,500,000 A 10 percent decrease in sales revenues would have a bigger impact on returns than a 10 percent increase in development costs. A 10 percent increase in development costs would have a bigger impact on returns than a 10 percent decrease in sales revenues. A 10 percent increase in development costs and a 10 percent decrease in sales revenues would have opposite impacts on returns, canceling each other out and having no impact on returns. Both factors would have such a small impact that there is no reason to be concerned about either a