The sensitivity/scenario analysis:
A)provides a quantitative measure of project risk.
B)requires as input a probability distribution for each variable affecting project NPV.
C)indicates the variability of project NPV with fluctuations in the value of variables.
D)All of the above
E)None of the above

Question

Quizplus · Accepted Answer

Sensitivity/scenario analysis indicates how the project's NPV changes with variations in key assumptions or variables, showing the variability of outcomes.

The Sensitivity/scenario Analysis