Question: Match the correct term with its explanation/definition. - A. B. C. D. scenario analysis - A. B. C. D. Sensitivity analysis - A. B. C.

Match the correct term with its explanation/definition.

- A. B. C. D.

scenario analysis
- A. B. C. D.

Sensitivity analysis
- A. B. C. D.

Equivalent annual annuity
- A. B. C. D.

Capital rationing
A.

Risk analysis technique in which the best and worst-case NPVsare compared with the project's expected NPV
B.

Risk analysis technique that shows the amount a project's NPV will change in response to a given change in an input variable such as sales, while all other things are held constant.
C.

Calculates the amount of NPV per year for mutually exclusive projects with unequal lives.
D.

When a firm limits its capital expenditures to less than the amount required to fund the optimal capital budget.

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