Sensitivity analysis

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Sensitivity analysis helps determine the:

a. range of possible outcomes given possible ranges for each variable.

b. degree to which the net present value reacts to changes in a single variable.

c. net present value given the best and the worst possible situations.

d. degree to which a firm is reliant upon multiple economic factors changing simultaneously.

e. ideal level of variable costs in relation to the fixed costs of a project.

Reference no: EM13767659

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