Which of the following project risk analyses is best able to analyze the effect of a single input, uncorrelated with other inputs, on the NPV of a project?

Question

Quizplus · Accepted Answer

Sensitivity analysis is used to determine how changes in one variable will impact the NPV of a project, making it the best choice for analyzing the effect of a single input that is not correlated with other inputs. Scenario analysis involves analyzing the impact of different combinations of inputs, while simulation analysis involves generating multiple simulated outcomes based on various inputs.

Which of the Following Project Risk Analyses Is Best Able