Which one of the following statements concerning scenario analysis is correct?

Multiple Choice

Scenario analysis determines which variable has the greatest impact on a project's final outcome.

The pessimistic$-$case scenario determines the maximum loss, in current dollars, that a firm could possibly incur from a given project

Scenario analysis helps managers analyze various outcomes that are possible given reasonable ranges for each of the assumptions.

Management is guaranteed a positive outcome for a project when the worst$-$case scenario produces a positive NPV$.$

Scenario analysis defines the entire range of results that could be realized from a proposed investment project