If a Project Holds an 80 Per Cent Probability of High

question 30

Multiple Choice

If a project holds an 80 per cent probability of high demand and a 20 per cent probability of low demand, then the expected value of the net present value of the two different demand assumptions would give us a weighted average net present value for the project. Such an analysis is called

• A) a sensitivity analysis.
• B) a scenario analysis.
• C) a simulation analysis.
• D) none of the above.

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Definitions:

Drive

An internal motivational state that compels organisms to engage in behaviors necessary to satisfy a physiological or psychological need.

Aroused

The condition of being awake and reactive to stimuli, often associated with increased physiological activity and alertness.

Incentives

External rewards or stimuli that motivate individuals to perform actions or exhibit behaviors.

Helmets

Protective headgear designed to absorb impacts or prevent injuries to the head during activities such as cycling, motorcycling, sports, or construction work.