One can employ simulation models to
I.understand the project better;
II.better understand forecasted cash flows;
III.assess the project risk
A)I only
B)II only
C)III only
D)I, II, and III

Question

Quizplus · Accepted Answer

Simulation models can be used to understand the project better by evaluating different scenarios and variables. It can also be used to better understand forecasted cash flows by simulating the impacts of various changes in the project's inputs and assumptions. Additionally, simulation models can help assess the project risk by testing its sensitivity to different risk factors and analyzing potential outcomes. Therefore, all three options (I, II, and III) are correct.

One Can Employ Simulation Models to