49. Sensitivity analysis, if used with capital projects * 1 punto a. Is used extensively when cash flows are known with certainty. b. Measures the change in the discounted cash flows when using the discounted payback method rather than the net present value method. c. Is a "what-if" technique that asks how a given outcome will change if the original estimates of the capital budgeting model are changed. d. Is a technique used to rank capital expenditure projects.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
9:27 AM
83%
No SIM
docs.google.com
Done
49. Sensitivity analysis, if used
with capital projects *
1 punto
a. Is used extensively when cash flows
are known with certainty.
b. Measures the change in the
discounted cash flows when using the
discounted payback method rather
than the net present value method.
c. Is a "what-if" technique that asks
how a given outcome will change if
the original estimates of the capital
budgeting model are changed.
d. Is a technique used to rank capital
expenditure projects.
Transcribed Image Text:9:27 AM 83% No SIM docs.google.com Done 49. Sensitivity analysis, if used with capital projects * 1 punto a. Is used extensively when cash flows are known with certainty. b. Measures the change in the discounted cash flows when using the discounted payback method rather than the net present value method. c. Is a "what-if" technique that asks how a given outcome will change if the original estimates of the capital budgeting model are changed. d. Is a technique used to rank capital expenditure projects.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Relevant cost analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education