Question

Which of the following is NOT accurate regarding evaluating NPV estimates and break-even analysis?

Question 20Select one:

a.
Scenario analysis looks at a minimum the best case and worst case and then measure the range of possible outcomes


b.
Sensitivity Analysis examines what happens to NPV when we change one variable at a time


c.
Accounting break-even point is sales volume at which NI = 0


d.
All of the answers are correct

e.
Cash break-even point is sales volume at which NPV = 0

Answer 1

d. All of the answers are correct

This statement is not accurate because not all of the answers are correct. The other options (a, b, c, and e) are accurate regarding evaluating NPV estimates and break-even analysis.