Question

Several types of analyses are available for evaluating a project's risk. In the following table, correctly identify the analysis being described. Scenario Analysis o Sensitivity Simulation Analysis Analysis 0 0 0 Estimates the NPV after a given period of time, assuming specific changes in the values of multiple key factors that could affect a project's NPV Uses an algorithmic method to pick values randomly from probability distributions to calculate a project's NPV Requires changes in one assumption at a time to observe the impact on NPV nat 0 0 0 Consider the following case: Coppinger Corp. is evaluating a new project. Coppinger used the expected values of unit sales, price per unit, and variable cost per unit to calculate an expected NPV of $13,500. Coppinger has developed a few different possible cases of what demand and costs might look like for the new project, which are summarized in this table: Base case Worst case Best case Unit Sales 120,000 70,000 150,000 Price per Variable Cost Unit per Unit $6.00 $4.25 $5.50 $5.25 $6.50 $3.80 NPV $13,500 -$22,600 $31,200 What kind of risk analysis is Coppinger using? O O Sensitivity analysis Simulation analysis Scenario analysis

Answer 1

as per HomeworkLib policy .. please find below the answer of 1st 4 question for rest of question please raise new request..

Ans 1	Scenario analysis: Because NPV is being analyzed using various variable factor
Ans 2	Simulation analysis: This is simulation analysis because probability distribution is being used randomly.
Ans 3	Sensitivity analysis : Because only 1 factor is being variable rest are constant
Ans 4	this is example of Scenario analysis : NPV is being analyzed based on various variable factor.