5. Methods of analyzing risk for capital budgeting decisions Aa Aa Several types of analyses are available for evaluating a project's risk. In the following table, correctly identify the analysis being described Scenario Sensitivity Simulation Analysis Analysis Analysis Examines the effect of simultaneous changes in multiple drivers of a project's NPV Uses computers to consider a large number of possibilities for a project Measures the change in NPV that occurs when only one variable is changed O Consider the following case: Coppinger Corp. is considering the use of a computer to assign probability distributions to the input variables used in the analysis. The computer would then randomly select input variables from their distributions and calculate NPVs based on those selections. What kind of analysis is this? O Sensitivity analysis O Scenario analysis Simulation analysis