dropdown 1 options: simulation analysis, sensitivity analysis, scenario analysis

dropdown 2 options: true, false

5. Methods of analyzing risk for capital budgeting decisions Several types of analyses are available for evaluating a project's risk. In the following table, correctly identify the analysis being described. 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 colculate 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: What kind of risk analysis is Coppinger using? Simulation analysis Scenario analysis Sensitivity analyais Suppose Coppinger Corp. Is evaluating a new capital budgeting project and conducting some basic risk analysis. First, it calculates the project's NPV at various levels for the project's key input variables. Coppinger next calculates the project's NPV at various prices per unit, plots the results on the accompanying graph, and then repeats this process separately for varlable cost per unit and required return. This process is a , whose results are shown on the graph. According to this analysis, which variable is the key value driver for the profect? Price per unit Variable cost per unit Required return At the current input-value estimates, does this project have a positive or negative NPV? Negative NPV Positive NPV Decision trees are a visual representation of the sequential choices that financial decision makers face when making capital budgeting and investment decisions. True or False: The beginning of the project is less risky than later stages. Continue without saving