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:

AC Sinewave

Represents alternating current electricity in a waveform that alternates in a sinusoidal manner, typical of household electrical supply.

Ion

An atom with either an excess or a deficiency of electrons in the valence; a negatively or positively charged particle.

Surplus of Electrons

A condition where there are more electrons than protons in a system, leading to a negative charge.

Ohmmeter

An instrument for measuring electrical resistance in ohms, used in diagnosing and troubleshooting electrical problems.