Project degree of sensitivity to variable costs increases

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Reference no: EM131987537

1. As a project's degree of sensitivity to variable costs increases, the

A. forecasting risk of the project decreases.

B. dependence of the final outcome on variable costs decreases.

C. more attention management should pay to the actual variable costs throughout the project.

D. lower the maximum potential value of the project.

E. lower the maximum potential loss of the project.

2. Your parents will retire in 28 years. They currently have $270,000 saved, and they think they will need $1,550,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.

Reference no: EM131987537

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