hard20 pts · first answer countssensitivity-analysis

Reading a tornado chart

A tornado chart for project NPV shows the widest bar for raw material price and the narrowest for office rent. What should the analyst conclude?

A.Office rent is the biggest risk because its bar is at the bottomB.NPV is most sensitive to raw material price, so that assumption needs the most attentionC.Raw material price has the highest probability of changingD.The project should be rejected

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Reading a tornado chart

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