If you analyze a project by considering the effect on npv


1. If you analyze a project by considering the effect on NPV of changing multiple parameters, you would be employing which of the following methods?

A. Scenario Analysis

B. Break-Even Analysis

C. Sensitivity Analysis

D. Real Options

2. You are thinking about buying a rare collectible that costs $100,000. The dealer is proposing the following deal: She will lend you the money and you will repay the loan by making the same payment every three years for the next 30 years. If the interest rate is 6% p.a., compunded annually, the amount you will have to pay every three years is closest to:

a) $7,265

b) $13,587

c) $19,203

d) $23,129

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Financial Management: If you analyze a project by considering the effect on npv
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