Determine he acceptability of a project

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Theoretically the NPV is the most appropriate method to determine he acceptability of a project. A false sense of security can overwhelm the decision-maker when the procedure is applied properly and the positive NPV results are accepted blindly. Sensitivity and scenario analysis aid in the process by:

Changing the underlying assumptions on which the decision is based. Highlighting the areas were more and better data are needed. Providing a picture of how an event can effect the calculations. All of the above.none of the above.

Reference no: EM132386290

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