[blank] is a risk analysis technique in which the best- and worst-case net present values are compared with the project's expected net present value.
A)Project standing alone risk
B)Decision tree analysis
C)Scenario analysis
D)Pure play method

Question

Quizplus · Accepted Answer

Scenario analysis involves examining different scenarios and their potential impact on the project's net present value. In this technique, the best- and worst-case scenarios are compared to the expected net present value to evaluate the project's risk. This allows decision-makers to identify potential risks and adjust their strategy accordingly. The other options, including project standing alone risk, decision tree analysis, and pure play method, are not directly related to this technique.

[Blank] Is a Risk Analysis Technique in Which the Best-