Post Utme Esut 2018 General Studies Question 32

Practice objective / multiple choice question 32 from the 2018 Post Utme Esut General Studies examination.

Post Utme Esut 2018 General Studies Objective / Multiple Choice
Question 32 POST_UTME_ESUT • 2018 • GENERAL STUDIES • objective
Post Utme Esut 2018 General Studies Question 32 diagram

A company is considering investing in a new project. The company's financial analyst has prepared a report that includes a sensitivity analysis. What is the purpose of the sensitivity analysis?

Answer Options

A. To determine the break-even point
Correct Answer B. To determine the sensitivity of the project's cash flows to changes in the discount rate
C. To determine the sensitivity of the project's cash flows to changes in the initial investment
D. To determine the sensitivity of the project's cash flows to changes in the operating costs
Correct Answer
B
Correct Option:
To determine the sensitivity of the project's cash flows to changes in the discount rate

About This Question

This is Post Utme Esut 2018 General Studies Question 32. It is one of the objective questions from the 2018 Post Utme Esut General Studies examination.

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