Sensitivity analysis Multiple Choice helps identify the variable within a project that presents the greatest forecasting risk. is used for projects that cannot be analyzed by scenario analysis because the cash flows are unconventional illustrates how an increase in operating cash flow caused by changing both the revenue and the costs simultaneously will change the net present value for a project. looks at the most reasonably optimistic and pessimistic results for a project Is generally conducted prior to scenario analysis just to determine if the range of potential outcomes is acceptable