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<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>
The answer is (b)
As sensitivity analysis examines how sensitive a particular NPV calculation is to changes in underlying assumptions
(b) Net Present Value
the correct answer is
(b) Net Present Value
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
