Disadvantage of sensitivity analysis

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Reference no: EM13767653

Which one of these is a disadvantage of sensitivity analysis?

a. Sensitivity analysis may decrease the false sense of security among managers.

b. Sensitivity analysis fails to identify the key variable that affects a project's net present value.

c. Each variable in sensitivity analysis is treated in isolation.

d. A sophisticated computer program is required to conduct sensitivity analysis.

e. Sensitivity analysis assumes most variables will achieve their most optimistic value.

Reference no: EM13767653

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