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Decision tree analysis: a. provides a relatively quick and easy way to get a rough idea of the probability distribution of NPV outcomes in a
Decision tree analysis:
a. | provides a relatively quick and easy way to get a rough idea of the probability distribution of NPV outcomes in a capital budgeting project. | |
b. | may prompt management to reject a project with a positive NPV (point estimate). | |
c. | does not apply to IRR analysis. | |
d. | a and b are both correct. |
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