Question: Suppose you are given the following sensitivity analysis table for a project: Suppose you are given the following sensitivity analysis table for a project: Key

Suppose you are given the following sensitivity analysis table for a project:

Suppose you are given the following sensitivity analysis table for a project:

Key Variable -10% -5% 0% (Base Case) +5% +10%
Unit Price $11,000 $12,000 $13,000 $14,000 $15,000
Demand $0 $1,000 $2,000 $3,000 $4,000
Variable Cost $12,000 $9,000 $6,000 $3,000 $0

Select the correct statement about this project from the options below.

The NPW of this project is more sensitive to the demand than the unit price.

The NPW of this project is more sensitive to the variable cost than the unit price.

The NPW of this project is more sensitive to the unit price than the variable cost.

The NPW of this project is more sensitive to the unit price than the demand.

Select the correct statement about this project from the options below.

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