An analysis of what happens to the estimate of a project's net present value when you examine a vast number of different likely economic situations is called ________ analysis.
A)forecasting
B)scenario
C)sensitivity
D)simulation
E)break-even

Question

Quizplus · Accepted Answer

Simulation analysis involves examining a project's net present value (NPV) under a wide range of possible economic scenarios, typically using computer models to simulate the effects of various economic conditions on the project's outcomes. This helps in understanding how changes in key variables impact the project's NPV.

An Analysis of What Happens to the Estimate of a Project's