Which approach estimates NPV by changing the value of several assumptions at once to represent possible outcomes of the project?

Question

Quizplus · Accepted Answer

Scenario analysis estimates NPV by changing several assumptions simultaneously to represent possible outcomes of the project. Sensitivity analysis changes one assumption at a time to see how it affects NPV. Forecasting simulation and Monte Carlo simulation both use computer models to estimate NPV, but do not specifically involve changing assumptions.

Which Approach Estimates NPV by Changing the Value of Several