12. Which of the following statements is FALSE? A.We can use sensitivity analysis to identify important factors. B.Sensitivity analysis considers the effect on net present value (NPV) of changing multiple project circumstances. C.changing the cost of capital will change the investment decision. D.Estimates of the cash flows and cost of capital are often subject to significant uncertainty.

The decision and acquiring of the long-term and short-term assets in which funds will be invested by…

Answered: Which of the following statements is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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12. Which of the following statements is FALSE?

	A.	We can use sensitivity analysis to identify important factors.
	B.	Sensitivity analysis considers the effect on net present value (NPV) of changing multiple project circumstances.
	C.	changing the cost of capital will change the investment decision.
	D.	Estimates of the cash flows and cost of capital are often subject to significant uncertainty.

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