ECO 1192 Study Guide - Midterm Guide: Investment, Monte Carlo Method, Mansfield
Document Summary
Scenario analysis allows the analyst to examine the sensitivity of a summary measure (e. g. , present worth) to changes to individual project parameters: true, false. What is the variable production cost of making the car parts: 50,000 + 5x, 50,000, 25x, none of the above answers. What is the breakeven point between buying and making car parts: 25, 2,500, cannot be determined from the information given, none of the above answers. Over what range is it cheaper (less costly) to make car parts: 0 to 250, 2,500, 0 to 2,500, none of the above answers. In an uncertain environment, the decision-maker has sufficient information to determine the probability of occurrence of future events or outcomes: true, false. The type of analysis that allows an analyst to examine the impact of changing only one project parameter at a time on a summary measure (e. g. , present. Worth) is: breakeven analysis, capital rationing, scenario analysis, none of the above answers.
