The Difference Between Scenario Analysis and Sensitivity Analysis Is

question 10

Multiple Choice

The difference between scenario analysis and sensitivity analysis is:

• A)Scenario analysis is based upon the internal rate of return (IRR)and sensitivity analysis is based upon net present value (NPV).
• B)Only sensitivity analysis allows us to change our estimated inputs of our net present value (NPV)analysis.
• C)Scenario analysis considers the effect on net present value (NPV)of changing multiple project parameters.
• D)Only scenario analysis breaks the net present value (NPV)calculation into its component assumptions.

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Definitions:

Retaining Face

The act of maintaining respect, dignity, or honor in social situations, often by avoiding embarrassment or humiliation.

Mediation

The process or intervention in a dispute or negotiation by an impartial third party to help those involved reach a settlement or understanding.

Retaining Face

The act of maintaining one's dignity, honor, and respect in the social context, often by avoiding embarrassment or admitting fault.

Mediation

A conflict resolution method involving a neutral third party who assists disputing parties in finding a mutually satisfactory agreement.