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The best definition of simulation analysis is: Multiple Choice A combination of scenario and sensitivity analyses. Investigation of what happens to NPV when only one

The best definition of simulation analysis is:

Multiple Choice

  • A combination of scenario and sensitivity analyses.

  • Investigation of what happens to NPV when only one variable is changed.

  • The determination of what happens to NPV estimates when we ask what-if questions.

  • A combination of statistical and probabilistic analysis.

  • The possibility that errors in projected cash flows lead to incorrect decisions.

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