Which of the following simulation outputs is likely to be most useful and easy to interpret? The output shows the distribution(s)of the project's:
A)sales.
B)internal rate of return.
C)cash flows.
D)profits.

Question

Quizplus · Accepted Answer

The distribution of cash flows is the most useful and easy to interpret simulation output because it provides insight into the timing and amount of expected cash inflows and outflows throughout the project's duration. This information is crucial for decision-making, particularly regarding financing needs and profitability. Sales, IRR, and profits are also valuable outputs, but they are narrower and less insightful than cash flows.

Which of the Following Simulation Outputs Is Likely to Be