The Difference Between Scenario Analysis and Sensitivity Analysis Is ________

question 88

Multiple Choice

The difference between scenario analysis and sensitivity analysis is ________.

• A) scenario analysis is based upon the internal rate of return (IRR) and sensitivity analysis is based upon net present value (NPV)
• B) only sensitivity analysis allows us to change estimated inputs of net present value (NPV) analysis
• C) scenario analysis considers the effect on net present value (NPV) of changing multiple project parameters
• D) only scenario analysis breaks the net present value (NPV) calculation into its component assumptions