You have put together a set of cash ﬂow forecasts for a project and have found, on your ﬁrst
calculation, that the NPV is positive. You should use scenario or sensitivity analysis to investigate
the project in greater detail.

Question

Quizplus · Accepted Answer

It is recommended to use scenario or sensitivity analysis to examine the project further even if the NPV is positive in the initial calculation. This helps to identify potential risks and uncertainties that could affect the project's profitability.

You Have Put Together a Set of Cash ﬂOw Forecasts