If one variable in a net present value analysis scenario is changed,you would be undertaking:

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Quizplus · Accepted Answer

Sensitivity analysis is the process of changing one variable in a financial model to analyze the effect it has on the outcome. Therefore, if one variable in a net present value analysis scenario is changed, conducting sensitivity analysis would be appropriate. Simulation analysis involves modeling multiple scenarios and their probabilities, while scenario analysis involves modeling the outcomes of multiple scenarios. None of these are specifically related to changing just one variable in a model.

If One Variable in a Net Present Value Analysis Scenario