At times, when a firm is considering an alternative such that a set of variables affecting a project are interrelated, then analysis that considers this interrelation could be performed. This is called

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A scenario analysis considers the interrelation between a set of variables affecting a project. A sensitivity analysis focuses on how sensitive the results of the project are to changes in one variable at a time, while a Monte Carlo simulation uses probability distributions to model the effects of uncertainties in multiple variables. Therefore, option B is the best choice for the given scenario.

At Times, When a Firm Is Considering an Alternative Such