After completing a project analysis, an analyst should rely on which tool to make a final recommendation on the project?
A)Sensitivity analysis
B)Break-even analysis
C)Decision trees
D)NPV

Question

Quizplus · Accepted Answer

NPV (Net Present Value) takes into account the time value of money and provides a more accurate representation of the profitability of the project. It is a widely used tool to determine whether a project is viable or not. Sensitivity analysis, break-even analysis, and decision trees are all useful tools, but they may not provide a conclusive recommendation on their own. Therefore, NPV is the best choice for making a final recommendation on the project.

After Completing a Project Analysis, an Analyst Should Rely on Which