Using a Computer Model to Repeatedly Vary the Combination of Project

question 29

Multiple Choice

Using a computer model to repeatedly vary the combination of project variables in order to compare vast numbers of potential NPVs is called:

• A) scenario analysis.
• B) sensitivity analysis.
• C) NPV break-even analysis.
• D)simulation analysis.

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Definitions:

Miles

A unit of distance measuring 5,280 feet, or approximately 1.609 kilometers.

Gallon

A unit of volume for liquid measure equal to four quarts, used in both the US customary system and the British imperial system, but with different values.

Gasoline

A volatile, flammable liquid derived from petroleum, primarily used as fuel in internal combustion engines.

Plastic Bottles

Containers made from polyethylene terephthalate (PET) or other plastics, used to hold liquids or other products.