Genevieve Has Developed a Computer Software Program That Analyzes Potential

question 94

Multiple Choice

Genevieve has developed a computer software program that analyzes potential project outcomes. The software randomly assigns a value to each of the variables, such as sales quantity and variable cost per unit, and generates the resulting net present value for the project. This process is repeated hundreds of times with each variable always being assigned a random value within a given range of possible values. The software then produces a graph depicting the net present values that were generated. By using this software, Genevieve is conducting _____ analysis.

• A) Sensitivity.
• B) Scenario.
• C) Simulation.
• D) Financial break-even.
• E) Cash break-even.

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Definitions:

Group Members

Individuals who are part of a collective or team, sharing a common purpose or goal.

External Locus

A belief system where individuals attribute their successes or failures to external factors or forces beyond their control.

Passion

A strong, intense emotion or enthusiasm towards activities, ideas, or fields of interest, often driving motivation and commitment.

Work

The effort applied towards producing or accomplishing tasks, either physical or mental, for a purpose such as earning income.