Worst case scenario determines the maximum loss

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Reference no: EM13876317

Which one of the following statements concerning scenario analysis is correct?

A. The worst case scenario determines the maximum loss, in current dollars, that a firm could possibly incur from a given project.

B. Scenario analysis defines the entire range of results that could be realized from a proposed investment project.

C. Scenario analysis determines which variable has the greatest impact on a project's final outcome.

D. Scenario analysis helps managers analyze various outcomes that are possible given reasonable ranges for each of the assumptions.

E. Management is guaranteed a positive outcome for a project when the worst case scenario produces a positive NPV.

Reference no: EM13876317

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