Widget Corp

question 38

Multiple Choice

Widget Corp. wants to make a capital investment. However, before making the investment, the company wants to thoroughly analyze all the risks related to politics, economy, inflation, and tax that can jeopardize its investment plan. Given the scenario, which of the following analysis methods should the company use to assess the riskiness of the capital investment using net present value (NPV) ?

• A) Five Whys analysis
• B) CATWOE analysis
• C) SWOT analysis
• D) Sensitivity analysis

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Definitions:

Agent

An individual or entity authorized to act on behalf of another (the principal) in legal or business matters.

Law of Incapacity

Legal principles that determine when an individual lacks the legal ability to perform certain actions, such as entering into a contract, due to reasons like age or mental health.

Insanity

A legal term describing a person's inability to understand the nature of his or her actions or distinguish between right and wrong due to mental illness.

Charter of Rights and Freedoms

A foundational legal document in Canada that guarantees fundamental freedoms and rights to its citizens, ranging from freedom of expression to rights to a fair trial.