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In order to assess a project's stand-alone risk, an analyst has calculated four net present values (NPVs) for a project. These NPVs range from a
In order to assess a project's stand-alone risk, an analyst has calculated four net present values (NPVs) for a project. These NPVs range from a negative $10 million to a positive $42 million. The four NPVs correspond to economic environments of negative GDP growth, low GDP growth, moderate GDP growth, and high GDP growth. She changes several variables in the NPV calculation to account for the differing economic outcomes. The analyst has most likely completed a:
Question 15 options:
| Monte Carlo analysis. |
| sensitivity analysis. |
| scenario analysis. |
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