The Difference Between Scenario Analysis and Sensitivity Analysis Is

question 80

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.
• E)Sensitivity analysis allows for variations in many of the underlying assumptions simultaneously.

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Definitions:

Structure of Mind

A theoretical framework describing the mind's organization, often discussed in terms of different components such as the conscious, unconscious, and preconscious.

Scientific Approach

A method of research involving systematic observation, measurement, and experiment, and the formulation, testing, and modification of hypotheses.

Structures of Mind

This term suggests a conceptual framework for understanding the complex organization and function of the psyche or brain, including cognitive processes and emotional responses.

Mental Elements

Fundamental components or aspects that constitute the mind or psychological processes.