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Add, modify, and remove questions. Select a question type from the Add Question drop-down list and click Go to add questions. Use Creation Settings to establish which default options, such as feedback and images, are available for question creation. COURSES > FUNDAMENTALS OF CORPORATE FINANCE:, 9/E- ROSS > CONTROL PANEL > POOL MANAGER > POOL CANVAS Pool Canvas Add Multiple Choice Creation Settings Name Chapter 11 Project Analysis and Evaluation Description Questions which Blackboard's assessment component is incapable of supporting are not included in the export. Instructions Add Question Here Question 1 Multiple Choice Question Forecasting risk is defined as the possibility that: Answer some proposed projects will be rejected. some proposed projects will be temporarily delayed. incorrect decisions will be made due to erroneous cash flow projections. some projects will be mutually exclusive. tax rates could change over the life of a project. Correct Feedback Refer to section 11.1 Incorrect Feedback Refer to section 11.1 Add Question Here Question 2 Multiple Choice Question Scenario analysis is defined as the: Answer determination of the initial cash outlay required to implement a project. determination of changes in NPV estimates when what-if questions are posed. isolation of the effect that a single variable has on the NPV of a project. separation of a project's sunk costs from its opportunity costs. analysis of the effects that a project's terminal cash flows has on the project's NPV. Correct Feedback Refer to section 11.2 Incorrect Feedback Refer to section 11.2 Add Question Here Question 3 Multiple Choice Question An analysis of the change in a project's NPV when a single variable is changed is called _____ analysis. Answer forecasting scenario sensitivity simulation break-even Correct Feedback Refer to section 11.2 Incorrect Feedback Refer to section 11.2 Add Question Here Question 4 Multiple Choice Question An analysis which combines scenario analysis with sensitivity analysis is called _____ analysis. Answer forecasting combined complex simulation break-even Correct Feedback Refer to section 11.2 Incorrect Feedback Refer to section 11.2 Add Question Here Question 5 Multiple Choice Question Variable costs can be defined as the costs that: Answer remain constant for all time periods. remain constant over the short run. vary directly with sales. are classified as non-cash expenses. are inversely related to the number of units sold. Correct Feedback Refer to section 11.3 Incorrect Feedback Refer to section 11.3 Add Question Here Question 6 Multiple Choice Question Fixed costs: Answer change as a small quantity of output produced changes. are constant over the short-run regardless of the quantity of output produced. ... View Full Document

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