An Analysis of What Happens to the Estimate of Net

question 58

Multiple Choice

An analysis of what happens to the estimate of net present value when only one variable is changed is called _____ analysis.

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

---

Definitions:

Base Year

A specific year against which economic growth is measured, serving as a standard of comparison for other years.

National Income

National Income is the total income earned by the residents of a country, including wages, profits, rents, and taxes, minus subsidies, over a certain period of time, often used to assess the economic health of a country.

Wages

Compensation provided to workers for their efforts or tasks, usually determined based on hours worked, daily rates, or the amount of work completed.

Salaries

Fixed regular payments, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.