10 When building a scenario analysis to evaluate a project w

10. When building a scenario analysis to evaluate a project which of the following components would you consider? Question 10 options:A. Factors to consider, one scenario, revenue/expense estimates, worst possible outcome. B Factors to consider, number of scenarios, revenue/expense estimates, probabilities.C Factors to consider, infinite scenarios, gambling odds, horoscope D. None of the above.

Solution

The option is B i.e., Factors to consider, number of scenarios , revenues / expenses, estimates, probabilities.

This is because in a scenario analysis to evaluate a project the probabilities are considered the most the number of various situations that can arise and the probable outcomes for each situations will include the estimations and revenues generated in each probabilities and expenses incurred in each probabilities. hence its Option B