Sensitivity analysis in evaluating project risk

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Reference no: EM132020196

1. Compare and contrast the uses of break-even analysis and sensitivity analysis in evaluating project risk.

2. What are the effects of coupon rate to the sensitivity of a bond price and to changes in interest rates?

3. Why must opportunity costs be included in cash flows, while sunk costs and interest expense must not?

Reference no: EM132020196

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