Multiple choice question:

QUESTION 8 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 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 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.