An Analysis of What Happens to the Estimate of the Net

question 17

Multiple Choice

An analysis of what happens to the estimate of the net present value when you examine a number of different likely situations is called _____ analysis.

• A) forecasting
• B) scenario
• C) sensitivity
• D) simulation
• E) break-even

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Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Operating Expense

Expenses incurred during the process of running a business that are not directly tied to producing goods or services.

Yield

The return on an investment over a particular period, expressed as a percentage, reflecting the income earned relative to the initial investment.