Which of the following technique is NOT used to assess an investment project’s risk (for NPV estimation)?
a. Variance analysis (e.g., compare the difference between the predicted and actual values.)
b. Sensitivity analysis (e.g., pay more attention to the steeper line.)
c. Scenario analysis (e.g., investigate the best, average, and worst cases.)
d. Monte Carlo simulation (e.g., based on 1,000 or 10,000 random runs.)