Question: Sensitivity analysis is based on: a. varying a single variable and measuring the resulting change in the RRR of a project. b. various states of

 Sensitivity analysis is based on: a. varying a single variable and

Sensitivity analysis is based on: a. varying a single variable and measuring the resulting change in the RRR of a project. b. various states of the economy and the probability of each state occurring c. freezing a single variable and measuring the resulting change in the net present value. d. changing one single variable and measuring the resulting change in the net present value. e. applying differing discount rates to a project's cash flows and measuring the effect on the NPV

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