Kizspy | Question: 15
(Choose 1 answer)
If a project has an 80 percent probability of high demand and a 20 percent probability of low demand, then the expected value of the net present value under two different demand assumptions would give us a weighted average net present value for the project. Such an analysis is called:
A. a sensitivity analysis.
B. a scenario analysis.
C. a simulation analysis.
D. a horizontal analysis.
