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What are the two main drawbacks of sensitivity analysis?
It does not consider interaction among variables.
It considers the effects of interactions among variables.
It is easy to compute.
It may increase the false sense of security among managers if all pessimistic estimates of NPV
are positive.

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What are the two main drawbacks of sensitivity analysis It .pdf

  • 1. What are the two main drawbacks of sensitivity analysis? It does not consider interaction among variables. It considers the effects of interactions among variables. It is easy to compute. It may increase the false sense of security among managers if all pessimistic estimates of NPV are positive.