What Is Trend Analysis

question 24

Multiple Choice

What is trend analysis?

• A) When numerical data are available, a trend can be plotted to display changes through time and into the future
• B) A trend is examined to identify its nature, causes, speed of development, and potential impacts
• C) Trends viewed as particularly important in a specific community, industry, or sector are carefully monitored, watched, and reported to key decision makers
• D) Complex systems can be modeled by means of mathematical equations and different scenarios can be run against the model to determine "what if" analysis

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Definitions:

Payback Period

The duration it takes for an investment to return its original cost to the investor.

NPV

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project by discounting all expected future cash flows back to their present value.

Profitability Index

A financial tool that calculates the relationship between the costs and benefits of a project by dividing the present value of future cash flows by the initial investment cost.

Mutually Exclusive

Situations or events that cannot occur at the same time—choosing one precludes the selection of the other.