Compare and contrast the uses of break-even analysis and sensitivity analysis in evaluating project risk.

Part 1

Must be answered with Much detail with Credible References that do not count towards word count. (APA) format

1. In what ways can the IRR make you give a flawed decision and what relationship the NVP have with the IRR? 300 words
2. Compare and contrast the uses of break-even analysis and sensitivity analysis in evaluating project risk. 300 words
3. What is the relation between a corporate bond’s expected return and the yield to maturity? In your answer, define default risk and explain how these rates incorporate default risk 300 words
4. Why should investors who identify positive-NPV trades be skeptical about their findings if they don’t inside information or a competitive advantage? What return should the average investor expect to receive? 300 words

Part 2

Briefly discuss some of the techniques that firms use to evaluate investments in order to decide which projects to pursue. 250 words