Theoretically the NPV is the most appropriate method to determine he acceptability of a project.A false sense of security can overwhelm the decision-maker when the procedure is applied properly and the positive NPV results are accepted blindly.Sensitivity and scenario analysis aid in the process by:

changing the underlying assumptions on which the decision is based.highlighting the areas were more and better data are needed.providing a picture of how an event can effect the calculations.all of the above.none of the above.