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An Analysis That Breaks the Net Present Value (NPV)calculation into Its

Question 53

Multiple Choice

An analysis that breaks the net present value (NPV) calculation into its component assumptions and shows how the net present value (NPV) varies as one of the underlying assumptions changes is called


A) scenario analysis.
B) accounting break-even analysis.
C) internal rate of return (IRR) analysis.
D) sensitivity analysis.

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