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Sensitivity analysis is used in capital budgeting to ?

a. Estimate project's internal rate of return b. Determine the amount that variable can change without generating unacceptable results c. Stimulate probabilistic customer reactions to a new product d. Identify the required market share to make a product viable and produce acceptable result

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Question added by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline
Date Posted: 2014/04/01

B. To determine the amount that variable can change without generating unacceptable results

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