Astroscope Tours finds that if it were to increase its price by 10 percent, it would have a 6 percent reduction in the NPV of its new 3-Hour Tour. Considering other things to be unchanged, Astroscope's analysis could be described as:

		Monte Carlo simulation.
		break-even analysis.
		sensitivity analysis.
		variance analysis.

2.5 points

QUESTION 9

If a firm were interested in knowing the effect of a single input change on the net present value of a project, then the firm would most likely want to perform:

		a Monte Carlo simulation.
		a scenario analysis.
		a sensitivity analysis.
		a break-even analysis.

2.5 points

QUESTION 10

Scenario analysis can help a firm to:

		understand the degree of uncertainty that a different set of project-affecting circumstances may hold.
		eliminate all of the uncertainty that a different set of project-affecting circumstances may hold.
		transform a risky project into a risk-free project.
		understand the degree of certainty that a similar set of project-affecting circumstances may hold.