Scenario Analysis Is a Tool

question 3

Multiple Choice

Scenario analysis is a tool:

• A)to test the effect of changing one estimate on the NPV of the project.
• B)to test the effect of changing several estimates on the NPV of the project.
• C)to assess taking a project this fiscal year or waiting for a few years before committing.
• D)none of the above.

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Definitions:

Instrumental Compliance

Following rules or guidelines not out of agreement or belief but as a means to achieve a certain goal or reward.

Imitates

To take or follow as a model; to replicate someone’s behavior or actions.

Resistance

Opposition or refusal to accept or comply with changes, policies, or practices.

Apathetic

Showing or feeling no interest, enthusiasm, or concern about something.