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Which of the following is FALSE regarding project evaluation using scenario analysis or sensitivity analysis? The NPV is an estimate of project value, but in

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Which of the following is FALSE regarding project evaluation using scenario analysis or sensitivity analysis? The NPV is an estimate of project value, but in reality there is still uncertainty about the actual outcome. Scenario analysis provides an estimate of the most likely outcome, the best outcome within reason, and the worst outcome within reason. O Scenario analysis takes into account that the project is just part of the firm, so it considers the diversifying effect of the project as part of the firm. Neither sensitivity analysis nor scenario analysis provides a decision rule. Sensitivity analysis examines the value of the project when a single input variable is changed to find how sensitive the outcome is to changes in that variable

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