An Analysis That Breaks the Net Present Value (NPV)calculation into Its

question 100

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.
• E)EBIT break-even analysis.

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Definitions:

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