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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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