Methods of analyzing risk for capital budgeting decisions A Aa veral types of analyses are available for evaluating a project's risk. In the following table, corectly identify the alysis being described. Scenario Sensitivity Simulation Analysis Analysis Analysis Generates results that are calculated under different scenarios based on formulaic assumptions by representing them in the form of frequency distributions Measures the effect on NPV estimates O 0 when key factors that affect NPV change in different situations Measures the percentage change in a project's NPV when a given variable is changed and all other NPV-drivers are held at their expected values O Consider the following case: Coppinger Corp. is considering the use of a computer to assign prebability 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 anal ysis is this? O Scenario analysis O Simulation analysis O Sensitivity analysis Suppose Coppinger Corp, is evaluating a now cepital budgeting project and concucting some besic ristk First, it calculates the project's NPV at various levels for the project s key irput variables. Coppinger next the project's NPV at various prices per unit, process separately for variable cost per unit end required return. This process is ae resuits are shown on the graph plots the results on the accompanying graph, and then repeats this whosa sensitivity analysis scenario anelysis s mulaton arelys s