In previous chapters, we calculated NPV based on a project's forecast cash flows. When doing what-if analysis, this initial estimate is called the ______________.
A) Initial analysis.
B) First go-around.
C) Base case.
D) Initial projection.
E) Best case scenario.

Question

Quizplus · Accepted Answer

The initial estimate of NPV based on forecast cash flows during what-if analysis is referred to as the "Base case." This serves as the standard or reference point for comparing other scenarios.

In Previous Chapters, We Calculated NPV Based on a Project's