When you apply the highest sales price and the lowest costs in a project analysis, you are constructing:
A) A best case scenario.
B) A base case scenario.
C) A worst case scenario.
D) A sensitivity to fixed costs.
E) A sensitivity to sales quantity.

Question

Quizplus · Accepted Answer

A best case scenario is constructed by applying the highest sales price and the lowest costs, as it represents the most optimistic outcome for the project's financial performance.

When You Apply the Highest Sales Price and the Lowest