Question 10 Q: 10 Explain why sensitivity analysis is useful when dealing with uncertainty in project appraisal. Select all the true statements. Options A: Sensitivity analysis enables a company to determine the effect of changes to fixed costs on the planned outcome B: Sensitivity analysis enables a company to determine the effect of changes to variables on the planned outcome C: In project appraisal, an analysis can be made if all the key variables to ascertain by how much variable would need to change before the net present value (NPV) reaches zero i.e. the indifference point. D: In project appraisal, in analysis can be made of all the key variables to ascertain by how much each variable would need to change before the net present value (NPV) reaches 100% i.e. the maximum point. Save Question Show Answer Discussion 0 Clear Discussion Most voted Newest No comments yet. Be the first to comment. Post Be respectful. No spam. Correct Answer: B, C Explanation References: References :
