Question

Sensitivity analysis in the calculation of the adjusted present value (APV) allows the financial manager to Multiple Choice consider in advance actions that can be taken should an investment not develop as anticipated. more fully understand the implications of planned capital expenditures. all of the options analyze all of the risks (business, economic, exchange rate uncertainty, political, etc.) inherent in the investment.

Answer 1

all of the options

Step-by-step explanation:

The sensitivity analysis would work in the case when the adjusted present value permits the financial manager for the following reasons

1. It considered in advance actions that should be taken as an investment

2. The impacts of the planned capital expenditures

3. The analyze of all types of risk whether it is busines, economical, etc that should be inherent in the investment

hence, it is all of the above