Conducting scenario analysis helps managers see the:
A) Impact of an individual variable on the outcome of a project.
B) Potential range of outcomes from a proposed project.
C) Changes in long-term debt over the course of a proposed project.
D) Possible range of market prices for their stock over the life of a project.
E) Allocation distribution of funds for capital projects under conditions of hard rationing.

Question

Quizplus · Accepted Answer

Scenario analysis allows managers to evaluate the potential range of outcomes from a proposed project by considering different scenarios, including best-case, worst-case, and most likely scenarios. This helps in understanding the variability in potential outcomes and in making informed decisions.

Conducting Scenario Analysis Helps Managers See The