Which technique considers a project's NPV under alternative assumed values of variables, changed one at a time?
A) Probability analysis
B) Sensitivity analysis
C) Scenario analysis
D) Discount- rate analysis

Question

Quizplus · Accepted Answer

Sensitivity analysis considers a project's NPV under alternative assumed values of variables, changed one at a time, to determine the effect of each variable on the outcome. Probability analysis, scenario analysis, and discount-rate analysis are other techniques used in project analysis that are not specific to varying one variable at a time.

Which Technique Considers a Project's NPV Under Alternative Assumed Values