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The Monte Carlo simulation:? a. ?calculates NPV for a change in one key variable. b. ?produces both an expected NPV (or IRR) and a measure
The Monte Carlo simulation:?
a. | ?calculates NPV for a change in one key variable. | |
b. | ?produces both an expected NPV (or IRR) and a measure of the riskiness of the NPV or IRR for different scenarios. | |
c. | ?can be useful for estimating a project's market risk. | |
d. | ?uses probability distributions for variables as input data to estimate the project's net present value (NPV). | |
e. | ?gives the exact outcome that can be expected from a project. |
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