Which of the Following Statements Is NOT Accurate Regarding Scenario

question 164

Multiple Choice

Which of the following statements is NOT accurate regarding scenario analysis?

• A) A positive NPV for a project's worst case scenario means it is likely the project will in fact offer a positive return.
• B) The worst case scenario is used to identify the point at which a project's NPV becomes negative.
• C) The base case scenario generally represents an average estimate of NPV.
• D) If the NPV of the best case scenario is negative then it is likely unnecessary to create base and worst case scenarios.
• E) Scenario analysis is likely not as effective as sensitivity analysis for determining which variables have the greatest impact on projected NPVs.

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Definitions:

Social Entrepreneurship

The practice of applying business principles and strategies to develop, fund, and implement solutions to social, cultural, or environmental issues.

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc.

Job Embeddedness

The extent to which an employee feels attached to their job and company, influencing their likelihood to stay.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often leading to prejudice and discrimination.