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

---

Definitions:

Railroad Rate-making

The process by which railroad companies set freight and passenger rates, historically a significant regulatory and economic issue in the United States.

Pendleton Civil Service Act

A federal law enacted in 1883 that established the principle of federal employment on the basis of merit and created a civil service commission.

Federal Jobs

are positions within the various branches of the United States government, including civilian and military roles.

Future Presidents

Individuals who will hold or are destined to hold the office of the President at a later time.