An analysis of what happens to NPV estimates when many variables take on many different values simultaneously is called:
A) Forecasting analysis.
B) Scenario analysis.
C) Sensitivity analysis.
D) Simulation analysis.
E) Break-even analysis.

Question

Quizplus · Accepted Answer

Simulation analysis is the correct answer because it involves assessing the impact on the Net Present Value (NPV) when multiple variables change simultaneously, often using computer models to simulate different scenarios and their outcomes.

An Analysis of What Happens to NPV Estimates When Many