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D: We discussed that we could use a simulation approach to evaluate the merits of a project given uncertainty about future cash flows. What two

  • D: We discussed that we could use a simulation approach to evaluate the merits of a project given uncertainty about future cash flows. What two metrics do we primarily rely on when evaluating whether or not to accept the project in this setting? What values should these metrics take for us to accept the project?
  • E: What is the general model we primarily rely on (in this class) to estimate the value of common stock?
  • F: Is it generally advisable to conduct a sensitivity analysis when computing a proposed projects NPV? Why or why not?

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