An Analytical Method That Uses a Computer to Quickly Examine

question 83

Multiple Choice

An analytical method that uses a computer to quickly examine a large number of scenarios and obtain probability estimates for various values in a financial analysis is known as:

• A) risk analysis.
• B) credit analysis.
• C) capital structure analysis.
• D) simulation analysis.

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Definitions:

Incentive Payment

A financial reward offered to encourage or motivate specific actions or behaviors in individuals or groups.

Target Amount

The specific financial goal or budget set for a project, initiative, or investment.

Cost Reimbursable Contract

A type of contract where a contractor is paid for all of its allowed expenses to a set limit plus additional payment to allow for a profit.

Time And Material Contracts

A contractual arrangement that pays for labor at a fixed hourly rate and materials at cost.