Which Approach Estimates NPV by Changing the Value of Several

question 35

Multiple Choice

Which approach estimates NPV by changing the value of several assumptions at once to represent possible outcomes of the project?

• A) Forecasting simulation
• B) Monte Carlo simulation
• C) Sensitivity analysis
• D) Scenario analysis

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Definitions:

Environmental Conditions

The external factors and influences that affect the living organisms and their survival.

Biological Son

A male child related by direct genetic lineage to his parents, specifically sharing DNA with his biological mother and father.

Genes

Units of heredity made up of DNA, acting as instructions to make molecules called proteins.

Twin Study

A study in which groups of monozygotic (identical) and dizygotic (fraternal) twins of the same sex are compared to each other and to other family members for similarity on a given trait.