4. Which statement is CORRECT?_ a) The Crossover Rate is used to compare two rep

ID: 2769038 • Letter: 4

Question

4. Which statement is CORRECT?_

a) The Crossover Rate is used to compare two repeatable projects with different lives.

b) The Equivalent Annual Annuity is the rate at which two projects have the same NPV.

c) The IRR is used as the required return for projects of average risk

d) Sensitivity Analysis measures the impact on project's NPV when a single assumption is changed

Please answer with explanation and correctly. I have answer sheet with me. wrong answer will give you a thumb down.

Sensitivity Analysis measures the impact on project's NPV when a single assumption is changed

therefore, option D is correct.

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