Question: Theoretically, the NPV is the most appropriate method to determine the acceptability of a project. A false sense of security can overcome the decision-maker when

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

None of these.changing the underlying assumptions on which the decision is based.All of these.providing a picture of how an event can affect the calculations.highlights the areas where more and better data are needed.

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