An Analysis in Which Each of the Inputs and Assumptions

question 12

Multiple Choice

An analysis in which each of the inputs and assumptions for a project takes on a separate assumed distribution whereby a computer draws on each of those input and assumption distributions to create a distribution for the NPV of the entire project is called:

• A) a sensitivity analysis.
• B) a scenario analysis.
• C) a simulation analysis.
• D) a horizontal analysis.

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Definitions:

Communication Model

A theoretical framework that describes the process of transmitting and receiving messages or information between two or more parties.

Encode Message

The process of transforming information into a form that can be understood by a receiver during communication.

Transmit Message

The process of conveying information or meaning from one entity or group to another through the use of mutually understood signs and semiotic rules.

Corporate Grapevine

The corporate grapevine is the informal and unofficial communication network within an organization, through which information, rumors, and gossip spread.