Question: Why would one perform a sensitivity analysis? In order to determine if the NPV or IRR should be used in the final decision making process.
Why would one perform a sensitivity analysis?
In order to determine if the NPV or IRR should be used in the final decision making process.
In order to determine the expected NPV and standard deviation of the project
In order to determine how many units must be sold in order to have a positive NPV
To understand which variables has the most impact on the NPV in order to better manage the project's risk
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