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