An analysis of the change in a project's NPV when a single variable is changed is called ________ analysis.
A) forecasting
B) scenario
C) sensitivity
D) simulation
E) break-even

Question

Quizplus · Accepted Answer

Sensitivity analysis examines the impact of a single, variable change on a project's NPV. It helps identify key drivers of the project's success or failure and assists in decision making. Forecasting, scenario, simulation, and break-even analyses are different types of financial analysis methods.

An Analysis of the Change in a Project's NPV When