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QUESTIONS Which of the following statements is false? Monte Carlo simulation is performed with software Sensitivity analysis examines how NPV changes when you change multiple

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QUESTIONS Which of the following statements is false? Monte Carlo simulation is performed with software Sensitivity analysis examines how NPV changes when you change multiple input variables at the same time Scenario analysis may be more realistic than sensitivity analysis because some input variables may be correlated in reality None of the above QUESTION 6 An analyst has projected that a firm will generate the following free cash flows during the next 3 years: Year 1 $110,000 Year 2 $121,000 Year 3 $133,100 After Year 3, the analyst projects that free cash flows will grow at 5% per year, permanently. The firm has outstanding debt of $1 million, no preferred stock, and 100,000 common shares outstanding. The firm's WACC is 10%. For simplicity, you can assume that the Year 1 free cash flow will be realized one year from today, the Year 2 cash flow will be realized two years from today, and so forth. Use the analyst's projections to estimate the value of one share of common stock (i.c., stock price). Round your final artswer to the nearest dollar (whole member) 510 514 518 None of the other answer choices are correct 524

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