After the completion of project analysis, the final decision on the project would be from:
A) Sensitivity analysis
B) Break-even analysis
C) Decision trees
D) NPV

Question

Quizplus · Accepted Answer

Sensitivity analysis, break-even analysis, and decision trees are all helpful tools in analyzing a project, but NPV (Net Present Value) is the best choice for determining the final decision on a project. NPV takes into account the time value of money and calculates the present value of all cash inflows and outflows associated with the project, allowing for a clear determination of whether the project is financially viable or not.

After the Completion of Project Analysis, the Final Decision on the Project