Asked by
Mallick Ndiaye
on Dec 09, 2024
Verified
An analysis of what happens to NPV estimates when we ask what-if questions is called:
A) Forecasting analysis.
B) Scenario analysis.
C) Sensitivity analysis.
D) Simulation analysis.
E) Break-even analysis.
Scenario Analysis
Scenario analysis is a process of analyzing possible future events by considering alternative possible outcomes (scenarios), thereby assessing the impact of various factors on decision outcomes.
- Understand the tactics and worth of scenario, sensitivity, and simulation analysis in the estimation of project outcomes.
Verified Answer
JP
Learning Objectives
- Understand the tactics and worth of scenario, sensitivity, and simulation analysis in the estimation of project outcomes.