Scenario Analysis Is Defined as The

question 11

Multiple Choice

Scenario analysis is defined as the:

• A) determination of the initial cash outlay required to implement a project.
• B) determination of changes in NPV estimates when what-if questions are posed.
• C) isolation of the effect that a single variable has on the NPV of a project.
• D) separation of a project's sunk costs from its opportunity costs.
• E) analysis of the effects that a project's terminal cash flows has on the project's NPV.