Sensitivity analysis is a technique in which:
A. all key input variables are changed to their most likely values to compute a project's net present value (NPV).
B. all of the input variables are set at their most reasonably expected values to computes a project's internal rate of return (IRR).
C. the values of key input variables are changed to observe the resulting changes in a project's net present value (NPV) and its internal rate of return (IRR).
D. a "bad" set and "good" set of financial circumstances are compared with a most likely, or base case, situation.
E. key input variables are set at their worst reasonably forecasted values to compute a project's net present value (NPV).
Answer: C
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