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What is meant by the term sensitivity analysis

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1. Within the context of capital-budgeting decisions, what is meant by the term sensitivity analysis? What kinds of sensitivity analysis can be used to support the capital-budgeting process?

2. List at least three important behavioral issues related to the capital-budgeting process.

3. "The net present value (NPV) method weighs early receipts of cash much more heavily than more distant receipts of cash." Do you agree? Why?

Reference no: EM13877598

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