Quiz Ch 10 – Defining Scenario Analysis
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
Which statement best defines scenario analysis?
Which statement best defines scenario analysis?
How does an increase in fixed costs affect break-even points assuming all else is constant?
Which of the following is NOT considered a real option?
Which of the following is NOT a drawback of sensitivity analysis?
Which action does NOT serve as an indication of the option to abandon a project?
Which scenario does NOT represent a viable option for expanding a project?
When does the NPV break-even point happen?
If a firm chooses to take advantage of the 100 percent bonus depreciation instead of using MACRS depreciation, how will it affect the project’s Year 1 operating cash flow?
Which simulation output, showing the distribution(s) of the project, is likely to be the most useful and easy to interpret?
Under what circumstances does Monte Carlo simulation prove to be most beneficial?