Question
Which of the following are TRUE regarding Risks in Capital Budgeting: Stand-alone risk? A. Montecarlo analysis is a computer simulation to measure a project risk
Which of the following are TRUE regarding "Risks in Capital Budgeting: Stand-alone risk"?
A. | Montecarlo analysis is a computer simulation to measure a project risk using thousands (or millions) of scenarios | |
B. | In Sensitivity analysis, one measures the output (such as NPV) by changing input variables (such as number of units sold) one at a time | |
C. | In Scenario analysis, one of the popular ways of assessing project risk, one input is changed at a time | |
D. | In Scenario analysis, one of the popular ways of assessing project risk, many inputs are changed simultaneously |
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