An analysis of what happens to NPV estimates when only one variable is changed is called

Can someone check to answers to the following?

Workshop One - 1.4 Quiz

Question 1.1. The basic form of what-if analysis is called scenario analysis, or the determination of what happens to NPV estimates when we ask what-if questions.
  (Points : 2)

Question 2.2. Financial break-even is the sales level that results in a zero NPV.
  (Points : 2)

Question 3.3. Marginal, or incremental, revenue is defined as the change in revenue that occurs when there is a small change in output.
  (Points : 2)

Question 4.4. The “bottom-up” approach to calculating operating cash flow is described by the following formula:  OCF = Sales – Costs – Taxes.
  (Points : 2)

Question 5.5. “Simulation analysis” is a combination of scenario and sensitivity analysis.
  (Points : 2)

Question 6.6. Marginal, or incremental, cost is defined as the change in costs that occurs when there are large changes in output.
  (Points : 2)

Question 7.7. It is important when analyzing an investment opportunity that we consider aftertax cash flows.
  (Points : 2)

Question 8.8. The incremental cash flows for project evaluation consist of any and all changes in the firm’s future cash flows that are a direct consequence of taking the project.
  (Points : 2)

Question 9.9. A sunk cost is a cost to be incurred in the future.
  (Points : 2)

Question 10.10. A negative impact on the cash flows of an existing product from the introduction of a new product is called erosion.  In this case, the cash flows from the new line should be adjusted upward to reflect lost profits on other lines.
  (Points : 2)

Question 11.11. In calculating break-even, it makes no difference to distinguish between variable costs and fixed costs.
  (Points : 2)

Question 12.12. Pro forma financial statements refer to prior years’ financial statements.
  (Points : 2)

Question 13.13. Operating leverage is the degree to which a firm or project relies on variable costs.
  (Points : 2)

Question 14.14. Equivalent annual cost (EAC) is the future value of a project’s costs calculated on an annual basis.
  (Points : 2)

Question 15.15. The degree of operating leverage (DOL) is the percentage change in operating cash flow relative to the percentage change in quantity sold.

 (Points : 2)

b12.Suppose that a project has a DOL = 0.6. If the quantity being produced increases from92 to 99, what is the expected percentage change in operating cash flow?

Get answer to your question and much more

d13.Find the accounting break-even point given the following information: Price = $40 perunit; variable cost = $30 per unit; annual fixed costs = $20,000; depreciation = $5,000.a.800 unitsb.1,500 unitsc.2,000 unitsd.2,500 unitse.4,000 units

e14.A firm has a DOL = 3. If sales decrease by 15%, then OCF will.

Get answer to your question and much more

c15.A firm has fixed costs of $8,000 per year, depreciation of $2,000 per year, a price perunit of $50, and an accounting break-even point of 400 units. What are the firm’s totalvariable costs at the accounting break-even point?

Get answer to your question and much more

e16.Suppose the projected unit sales has an upper bound of 8,000 and a lower bound of6,000, and the estimated variable cost per unit of $10 has +/– 25% forecast error.Calculate the best-case scenario project IRR.

Get answer to your question and much more

What happens to NPV estimates when we change the values of one variable at a time?

In which type of analysis is a single variable examined for changes in NPV?

What is the meaning of sensitivity analysis?

Which of the following refers to an investigation of what happens to net present value when only one variable is changed?