Question

Jamie is analyzing the estimated net present value of a project under various conditions by revising the sales quantity, sales price, and the cost estimates. The type of analysis that Jamie is doing is best described as:________.
a. sensitivity analysis.
b. erosion planning.
c. scenario analysis.
d. benefit planning.
e. opportunity evaluation

Answer 1

Answer: (C) Scenario analysis

Explanation:

 The scenario analysis is one of the type of process that basically helps in analyzing the development and also the various types of possible events in an organization.

The main role of the scenario analysis is that it helps in estimating the various types of development process and also helps in examining the different types of functions in an organization.

According to the given question, the Jamie is basically describe the scenario analysis process that helps in estimating the project current value such as total cost estimation, the sales quantity and also the sales price.

Therefore, Option (C) is correct answer.