Which of the following should a management team carry out to get a complete picture of a project?
A) Sensitivity analysis and break- even NPV calculations
B) Sensitivity analysis, break- even NPV calculations and scenario analysis
C) Sensitivity analysis and scenario analysis
D) Break- even NPV calculations and scenario analysis

Question

Quizplus · Accepted Answer

Sensitivity analysis allows for understanding the impact of changing variables on project outcomes, break-even NPV calculations allow for understanding at what point a project becomes profitable, and scenario analysis allows for understanding different potential outcomes based on different situations. Therefore, a combination of sensitivity analysis, break-even NPV calculations, and scenario analysis will provide the management team with a complete and comprehensive picture of the project.

Which of the Following Should a Management Team Carry Out