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

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Definitions:

Nuclear Family

A family unit consisting of two parents (a mother and a father) and their children, living together as a single household.

United States

A country in North America consisting of 50 states and a federal district, known for its significant influence on global politics, economy, and culture.

Group Marriage

A marital arrangement where more than two individuals enter into a marital relationship, sharing domestic, financial, and often parental responsibilities.

Eskimos

A term historically used for indigenous peoples inhabiting the circumpolar regions of Greenland, Canada, and Alaska, though some consider it outdated or pejorative.