Which of the following project risk analyses is best able to analyze the effect of a single set of circumstances, with correlated inputs, on the NPV of a project?
A) Sensitivity analysis.
B) Scenario analysis.
C) Simulation analysis.
D) Contribution analysis.

Question

Quizplus · Accepted Answer

Scenario analysis is best suited for analyzing the effect of a single set of circumstances on the NPV of a project, as it allows for the examination of different specific scenarios that include correlated inputs.

Which of the Following Project Risk Analyses Is Best Able