An Analysis That Breaks the NPV Calculation into Its Component

question 13

Multiple Choice

An analysis that breaks the NPV calculation into its component assumptions and shows how the NPV varies as one of the underlying assumptions is changed is called:

• A)scenario analysis.
• B)IRR analysis.
• C)accounting break-even analysis.
• D)sensitivity analysis.

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Definitions:

Observational

Relating to the acquisition of knowledge that is obtained by observing and studying subjects without influencing them.

Social Action Group

A collective aimed at promoting social change or addressing social issues through direct action and community involvement.

Empowered

describes a state of having the confidence, resources, and authority to take control of one’s life or situation.

Group Goal

A specific objective or target that is shared and pursued by members of a group.