Start learning →

How can the effect of uncertain forecasts on NPV be examined?

AVariance analysis
BRatio analysis
CSensitivity analysis
DTrend analysis
Answer & Solution
Correct answer: C. Sensitivity analysis
Varying one input at a time shows how much the NPV changes with each assumption.
Practise this question with Quill — CA Inter →

Keep practising Capital Budgeting Basics

Browse all Capital Budgeting Basics questions for CA Inter, or explore more Financial Management topics.

Start a Capital Budgeting Basics lesson →
Related questions