Question: True or false? a. Sensitivity analysis can be used to identify the variables most crucial to a project's success. b. Sensitivity analysis is used to

True or false?
a. Sensitivity analysis can be used to identify the variables most crucial to a project's success.
b. Sensitivity analysis is used to obtain expected, optimistic, and pessimistic values for total project cash flows.
c. Rather than basing one's estimate of NPV just on expected cash flows, it makes more sense to average the NPVs calculated from the pessimistic and optimistic estimates of cash flow.
d. Risk is reduced when a high proportion of costs are fixed.
e. The break-even level of sales for a project is higher when break-even is defined in terms of NPV rather than accounting income.

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