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The main focus of sensitivity analysis is to: Multiple Choice investigate how changing multiple variables will...

The main focus of sensitivity analysis is to:

Multiple Choice

  • investigate how changing multiple variables will change the Internal Rate of Return.

  • determine the one variable that has the highest level of risk.

  • find the break-even sales amount which reduces risk.

  • determine the variables that can be excluded from any further analysis.

  • identify the correct amount of variable and fixed costs.

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Answer #1

The main focus of sensitivity analysis is to:

b) determine the one variable that has the highest level of risk.

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