The difference between scenario analysis and sensitivity analysis is that
A) only scenario analysis breaks the net present value (NPV) calculation into its component assumptions.
B) scenario analysis considers the effect on net present value (NPV) of changing multiple project parameters.
C) only sensitivity analysis allows us to change our estimated inputs of our net present value (NPV) analysis.
D) scenario analysis is based upon the internal rate of return (IRR) and sensitivity analysis is based upon net present value (NPV) .
Correct Answer:
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