Using a Computer Model to Repeatedly Vary the Combination of Project

question 56

Multiple Choice

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

• A) Scenario analysis
• B) Sensitivity analysis
• C) NPV break-even analysis
• D) Simulation analysis

---

Definitions:

Fiber-optic

Pertaining to the technology that uses thin flexible fibers of glass or other transparent solids to transmit light signals for telecommunications or computing.

UTP

Unshielded Twisted Pair, a type of cable that is widely used for telecommunications and network connections without the need for shielding from interference.

WAN

A Wide Area Network (WAN) is a telecommunications network designed for computer networking, covering vast geographic regions.

P2P

Peer-to-Peer, a decentralized communications model in which each party can initiate a communication session and has equal privileges.