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

Question

Quizplus · Accepted Answer

Cash flows are a more concrete and comprehensive measure of project performance, as they capture both inflows and outflows over time. Additionally, they are easier to interpret as they can be compared to the project's initial investment and provide a clear picture of the project's financial performance. Sales and profits may not take into account all expenses and revenues, while internal rate of return may be harder to interpret for non-financial experts.

Which of the Following Simulation Outputs Is Likely to Be