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Sensitivity analysis is the term used to describe the process of examining the effects on the net present value of a project
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Answer #1

> Concept

Sensitivity analysis is a model that shows how target variables are affected based on changes in other variables. This model is also referred to as what-if or simulation analysis.

> Solution

Option e is correct. Since in the case of sensitivity analysis, the value of the single variable is changed and its impact on the NPV is noted.

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