Conducting scenario analysis helps managers see the:
A) impact of an individual variable on the outcome of a project.
B) potential range of outcomes from a proposed project.
C) changes in long-term debt over the course of a proposed project.
D) possible range of market prices for their firm's stock over the life of a project.
E) allocation distribution of funds for capital projects under conditions of hard rationing.

Question

Quizplus · Accepted Answer

Scenario analysis helps managers assess the potential range of outcomes for a proposed project by modeling different scenarios or situations that may affect the project, such as changes in market conditions, competition, and other variables. It allows managers to identify risks and opportunities associated with the project and develop appropriate strategies to mitigate potential risks and take advantage of opportunities.

Conducting Scenario Analysis Helps Managers See The