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IrinaK [193]
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]3 years ago
8 0

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.

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Money market instruments is the best place for the investment.

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Money market instruments are securities that provide businesses, banks, and the government with large amounts of low-cost capital for a short period of  time, less than a year. Most of the money market instruments such as treasury bills, commercial papers, certificate of deposits etc provide fixed returns so this money market instrument is considered the best for investing money for good profit.

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