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In Sensitivity Analysis, the emphasis is on assessment of sensitivity of

<p style="text-align:left;">(<strong>a) Net Economic Life, </strong></p> <p style="text-align:left;"><strong>(b) Net Present Value, </strong></p> <p style="text-align:left;"><strong>(c) Both (a) and (b), </strong></p> <p style="text-align:left;"><strong>(d)None of (a) and (b)</strong></p>

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/23
Almutaz Bakry Sidahmed
by Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate

The answer is (b)

As sensitivity analysis examines how sensitive a particular NPV calculation is to changes in underlying assumptions

ADNAN ANWER ACCA   UAE CA
by ADNAN ANWER ACCA UAE CA , Assistant Finance Manger - Group Financial Reporting & Consolidation ( R to R ) , Pure Health Medical Supplies

(b) Net Present Value

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

the correct answer is 

(b) Net Present Value

Mohammad AL Amleh
by Mohammad AL Amleh , Executive Manager , Lambda Business Company Ltd.

In financial analysis, B is the correct answer.

One can apply sensitivity analysis to price a product, specify a production level, transportation routes or any other multi-variable issue bending a decision

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