Answer Happy

Which statement is correct without limitations? Select one: A. Scenario analysis assumes the change in one single underlying assumption and depicts how the NPV varies holding all other assumptions constant. B. Break-even analysis is about the determination of the level of a parameter which leads to a net present value of zero. C. Changing multiple estimated inputs of net present value calculations is only possible for the sensitivity analysis. D. All of these statements are correct. Which of the following statements is correct without limitations? Select one: A. The free cash flow can either be calculated directly, or it can be calculated indirectly by using the information from the firm's balance sheet. B. In capital budgeting decisions interest expenses, depreciation and capital expenditures must always be taken into account in the free cash flow calculation. C. In practice, real world complexities such as time-varying sales, changing market prices, and non-constant production costs have no complicating effect on the determination of the free cash flow. OD. When choosing between alternatives, we only need to include those components of free cash flow that differ among the alternatives.