An analysis of the change in a project's NPV when a single variable is changed is called _____ analysis

1.

Forecasting risk is defined as the possibility that:    A.  some proposed projects will be rejected. B.  some proposed projects will be temporarily delayed. C.  incorrect decisions will be made due to erroneous cash flow projections. D.  some projects will be mutually exclusive. E.  tax rates could change over the life of a project. Refer to section 11.1

2.

Scenario analysis is defined as the:    A.  determination of the initial cash outlay required to implement a project. B.  determination of changes in NPV estimates when what-if questions are posed. C.  isolation of the effect that a single variable has on the NPV of a project. D.  separation of a project's sunk costs from its opportunity costs. E.  analysis of the effects that a project's terminal cash flows has on the project's NPV. Refer to section 11.2

3.	An analysis of the change in a project's NPV when a single variable is changed is called _____ analysis.    A.  forecasting B.  scenario C.  sensitivity D.  simulation E.  break-even Refer to section 11.2

4.	An analysis which combines scenario analysis with sensitivity analysis is called _____ analysis.    A.  forecasting B.  combined C.  complex D.  simulation E.  break-even Refer to section 11.2

5.	Variable costs can be defined as the costs that:    A.  remain constant for all time periods. B.  remain constant over the short run. C.  vary directly with sales. D.  are classified as non-cash expenses. E.  are inversely related to the number of units sold. Refer to section 11.3