Simulation is a statistics-based approach used in capital budgeting to get a feel for risk by applying predetermined probability distributions and random numbers to estimate risky outcomes.
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Q1: Behavioral approaches for dealing with risk include
Q2: Scenario analysis is a behavioral approach that
Q3: Projects with a small chance of being
Q4: In capital budgeting, risk refers to a
Q6: Behavioral approaches for dealing with risk include
Q7: Sensitivity analysis is a statistics-based approach used
Q8: All projects should always use the WACC
Q9: Scenario analysis is a behavioral approach that
Q10: The break even cash inflow is the
Q11: The output of simulation provides an excellent
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