An Analysis That Breaks the Net Present Value (NPV) Calculation

question 8

Multiple Choice

An analysis that breaks the net present value (NPV) calculation into its component assumptions and shows how the net present value (NPV) varies as one of the underlying assumptions changes is called ________.

• A) scenario analysis
• B) internal rate of return (IRR) analysis
• C) accounting break-even analysis
• D) sensitivity analysis

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Definitions:

Select Query

In Structured Query Language, displays a subset of data from a table (or tables) based on the criteria specified.

Criteria Query

A method of querying in a database or a data technology platform that uses specific criteria to filter or select data.

Related Records

Database records that are connected or associated with one another through a common field or relation.

Table

In computer programming and database management, a structured arrangement of data made up of rows and columns, used to organize and display information systematically.