Sensitivity analysis evaluates the NPV with respect to: Select one: a. Changes in the underlying assumptions....
Sensitivity analysis evaluates the NPV with respect to:
Select one:
a. Changes in the underlying assumptions.
b. One variable changing while holding the others constant.
c. Different economic conditions.
d. All of the above.
e. None of the above.
Homework Answers
Sensitivity analysis evaluates the NPV with respect to change in componenets of NPV and its effect on NPV. So, Sensitivity analysis evaluates the NPV with respect to One variable changing while holding the others constant.
Option (B) is correct answer.
Add Answer to:
Sensitivity analysis evaluates the NPV with respect to:
Select one:
a. Changes in the underlying assumptions....
Which of the following is not one of the assumptions underlying cost-volume-profit analysis? Select one: O...
Which of the following is not one of the assumptions underlying cost-volume-profit analysis? Select one: O A. Production equals sales. O B. All costs can be segregated into fixed and variable components. O C. The selling price increases or decreases with changes in sales volume. O D. Costs are linear.
24. A company estimates an NPV of a project under three different set of assumptions (Bear,...
24. A company estimates an NPV of a project under three different set of assumptions (Bear, Base, Bull) to Fotoaluate forecasting risk; management agrees to undertake the project if the weighted average NPV for Font Size the three different scenarios (Bear, Base, Bull) is positive. Based on the scenario analysis performed, the company will pursue the project. Evaluate the underlined words in italics. True or False? Scenerio Bear Base Bull $ $ $ NPV Probability (100) 30.00% 35 50.00% 65...
1) Earnings sensitivity analysis involves: A) always using parallel yield curve movements B) allowing asset yields...
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Please round the numbers to 3 decimal places Problem 9-20 Sensitivity Analysis [LO 3] We are...
Please round the numbers to 3 decimal places
Problem 9-20 Sensitivity Analysis [LO 3] We are evaluating a project that costs $2,130,000, has a 8-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project Sales are projected at 90,600 units per year. Price per unit is $38.85, variable cost per unit is $23.95, and fixed costs are $860,000 per year. The tax rate is 25 percent, and we require a...
Find the derivative of y with respect to the independent variable. Select one: A. g* *...
Find the derivative of y with respect to the independent variable. Select one: A. g* * 12 In gx + 1) + 1 in gx C. x(2 In 9x +1) DOX +7(2 in 9x) 2. E, none y-arte
Sensitivity analysis can best be defined as Select one: a. a. a. Analyzing tradeoffs among multiple...
Sensitivity analysis can best be defined as Select one: a. a. a. Analyzing tradeoffs among multiple objectives. b. a. Measuring results against objectives. Measuring results against objectives. c. a. Examining how a decision would change if key facts were altered. b. Being sensitive to the impact of decisions on other variables. c. Measuring results against objectives. d. Judging the margin of error for key data used to make a decision. Analyzing tradeoffs among multiple objectives. Being sensitive to the impact...
If any of the assumptions of perfect competition are violated, Select one: a. supply-and-demand analysis cannot...
If any of the assumptions of perfect competition are violated, Select one: a. supply-and-demand analysis cannot be used to study the industry. b.graphs with flat demand curves cannot be used to study the firm. c.graphs with downward-sloping demand curves cannot be used to study the firm. d. there may still be enough competition in the industry to make the model of perfect competition usable. e. one must use the monopoly model instead.
How are physical changes different than chemical changes? Select one: O a. Chemical changes are much...
How are physical changes different than chemical changes? Select one: O a. Chemical changes are much faster than physical changes. O b. They aren't different at all. O c. Chemical changes are much more common than physical changes. O d. Chemical changes involve making and breaking bonds and physical changes do 9 . Chemical changes involve changes of state and physical changes do not.
Microeconomics multiple choice questions If implicit costs equal accounting profit, economic profit must be Select one:...
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Which of the following is not one of the assumptions underlying cost-volume-profit analysis? Select one: O A. Production equals sales. O B. All costs can be segregated into fixed and variable components. O C. The selling price increases or decreases with changes in sales volume. O D. Costs are linear.
24. A company estimates an NPV of a project under three different set of assumptions (Bear, Base, Bull) to Fotoaluate forecasting risk; management agrees to undertake the project if the weighted average NPV for Font Size the three different scenarios (Bear, Base, Bull) is positive. Based on the scenario analysis performed, the company will pursue the project. Evaluate the underlined words in italics. True or False? Scenerio Bear Base Bull $ $ $ NPV Probability (100) 30.00% 35 50.00% 65...
Please round the numbers to 3 decimal places
Problem 9-20 Sensitivity Analysis [LO 3] We are evaluating a project that costs $2,130,000, has a 8-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project Sales are projected at 90,600 units per year. Price per unit is $38.85, variable cost per unit is $23.95, and fixed costs are $860,000 per year. The tax rate is 25 percent, and we require a...
Find the derivative of y with respect to the independent variable. Select one: A. g* * 12 In gx + 1) + 1 in gx C. x(2 In 9x +1) DOX +7(2 in 9x) 2. E, none y-arte
Sensitivity analysis can best be defined as Select one: a. a. a. Analyzing tradeoffs among multiple objectives. b. a. Measuring results against objectives. Measuring results against objectives. c. a. Examining how a decision would change if key facts were altered. b. Being sensitive to the impact of decisions on other variables. c. Measuring results against objectives. d. Judging the margin of error for key data used to make a decision. Analyzing tradeoffs among multiple objectives. Being sensitive to the impact...
If any of the assumptions of perfect competition are violated, Select one: a. supply-and-demand analysis cannot be used to study the industry. b.graphs with flat demand curves cannot be used to study the firm. c.graphs with downward-sloping demand curves cannot be used to study the firm. d. there may still be enough competition in the industry to make the model of perfect competition usable. e. one must use the monopoly model instead.
How are physical changes different than chemical changes? Select one: O a. Chemical changes are much faster than physical changes. O b. They aren't different at all. O c. Chemical changes are much more common than physical changes. O d. Chemical changes involve making and breaking bonds and physical changes do 9 . Chemical changes involve changes of state and physical changes do not.
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