Quiz Ch 12 – T/F Assessing Project Risk through Sensitivity Analysis

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

0
(0)
Back
True or false: Sensitivity analysis gauges a project's individual risk by illustrating the impact of small changes in input variables, like sales, on NPV (or IRR). When holding other factors constant, a steeper line on a graph—representing the relationship between the variable size and NPV—indicates higher project risk.

Experts Have Solved This Problem

Please login or register to access this content.

  • Search Terms: a. b. false true (or a affected analysis and axis axis, by change constant, constant. graph graphed held horizontal how in independent input irr) is line, measures more much npv of on one other project's project, relationship risk risky sales. say sensitivity showing size small stand-alone steeper the things variable variables, vertical with
Back
  • The use of this software is to provide check figures to compare against your own individual work. Accuracy of the check figures is not guaranteed. By purchasing credits and using our software/services, you assume all liability for the use of the software and affirm that you are abiding by your university’s academic policies. Please report any errors above.