An exploration of the effect of changing multiple project parameters on net present value (NPV) is called

Question

Quizplus · Accepted Answer

Sensitivity analysis explores the effect of changing one project parameter at a time, while scenario analysis explores the effect of changing multiple project parameters in different combinations. IRR analysis and accounting break-even analysis are specific types of financial analysis that do not necessarily involve changing project parameters. Therefore, scenario analysis best fits the description provided in the question.

An Exploration of the Effect of Changing Multiple Project Parameters