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(ii) Briefly explain the extent to which the application of sensitivity analysis

2021-04-25   

(ii) Briefly explain the extent to which the application of sensitivity analysis might be useful in deciding

which refrigeration system to purchase and discuss the limitations inherent in its use. (3 marks)

正确答案:

(ii) Sensitivity analysis could be used to assess how responsive the NPV calculated in part (a) in respect of each decisionoption change is to changes in the variables used to calculate it. The application of sensitivity analysis requires that thenet pres

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