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.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16MC: When using the NPV method for a particular investment decision, if the present value of all cash...
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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.
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