Which of the following statements relating to Capital Budgeting are incorrect?

a) Managerial options are future opportunities that managers can exploit as "real options"

b) Contingency planning takes into account managerial options implicit in a project

c) Sensitivity analysis investigates what happens to NPV when only one variable is altered

d) Scenario analysis is the determination of what happens to NPV estimates when we ask what-if questions

e) Forecasting risk is the possibility that errors in projected cash flows will lead to correct decisions