Question
Which of the following is not true? A.) The scenario analysis allows us to predict how (un)profitable a project will be under various changes of
Which of the following is not true?
A.) The scenario analysis allows us to predict how (un)profitable a project will be under various changes of circumstances.
B.) Generally, a sensitivity analysis involves changing of one variable and how that affects the project's viability (e.g. profitability, NPV, etc.).
C.) The type of risk not addressed using the scenario and/or sensitivity analysis is the forecasting risk, defined as the possibility that we could make bade decisions because an erroneous projection in future cash flows.
D.) The break-even analysis allows us to find out when the project will start to be profitable based on changes in a given variable such as fixed or variable costs.
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