Gilligan's Boat Tours Finds That If It Were to Increase

question 32

Multiple Choice

Gilligan's Boat Tours finds that if it were to increase its price by 10 per cent, it would have a 6 per cent reduction in the NPV of its new 3-Hour Tour. Gilligan's analysis could be described as

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

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Definitions:

Government Decisions

Actions or policies chosen by public officials or governmental bodies that affect how a country is governed or how public resources are allocated.

Future Costs

Expected expenses that will be incurred in the production of goods or services in the future.

Observable Benefits

Advantages or improvements that can be directly seen or measured, often used in the context of evaluating the impact of a policy or investment.

Taxation

The process by which governments finance their expenditure by imposing charges on citizens and corporate entities.