Which of the Following Is NOT Correct

question 427

Multiple Choice

Which of the following is NOT correct?

• A) Forecasting risk is the possibility that errors in projected cash flows lead to incorrect decisions
• B) Scenario analysis is the determination of what happens to NPV estimates if we ask what-if questions
• C) Sensitivity analysis is an investigation of what happens to NPV when only one variable is changed
• D) Simulation analysis is a combination of scenario and sensitivity analysis
• E) Fixed costs are costs that change when the quantity of output changes during a particular time period