The base case values used in scenario analysis are the values considered to be the most:
A) optimistic.
B) desired by management.
C) pessimistic.
D) likely to create a positive net present value.
E) likely to occur.

Question

Quizplus · Accepted Answer

The base case values used in scenario analysis are the values that are most likely to occur, based on current information and trends. It is important to consider these values as a starting point for analysis, as they provide a realistic baseline against which other scenarios can be compared. While other factors, such as management preferences or desired outcomes, may also be taken into account, the focus should be on identifying the most likely outcomes and assessing their potential impact.

The Base Case Values Used in Scenario Analysis Are the Values