Jamie is analyzing the estimated net present value of a project under various conditions by revising the sales quantity, sales p

Question

3 years ago

13

Jamie is analyzing the estimated net present value of a project under various conditions by revising the sales quantity, sales p

rice, 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.

Business

1 answer:

Brut [27] · Answer 1 · 2022-06-21T20:32:05+03:00

Answer:

C. Scenario Analysis

Explanation:

Scenario Analysis is analysis of computing the Net Present Value by changing various variables, that is change in values of Sales, Variable Cost, Revenue, Cost of project and various other things. Basically it measures the Net Present Value with respect to various factors associated with calculating the net present value, as Jamie is calculating Net Present Value with different factors, that is in different scenarios, it is called Scenario Analysis.