The Sensitivity/scenario Analysis

question 5

Multiple Choice

The sensitivity/scenario analysis:

• A)provides a quantitative measure of project risk.
• B)requires as input a probability distribution for each variable affecting project NPV.
• C)indicates the variability of project NPV with fluctuations in the value of variables.
• D)All of the above
• E)None of the above

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Definitions:

Employed

Employed refers to individuals who are working for pay or profit, engaging in a job or business, within a stipulated period.

Unemployed

Refers to individuals who are capable of working and willing to work but cannot find employment.

Misery Index

An economic indicator created by summing the unemployment rate and inflation rate, intending to measure economic discomfort within a country.

Financial Industry

A sector of the economy that includes businesses and institutions that provide financial services, such as banking, investment, and insurance.