The advantage of using simulation in the capital budgeting process is the ________.
A) ease of calculation over scenario analysis
B) continuum of risk-return trade-offs for decision making
C) single point estimate that helps the decision maker to choose the most accurate alternative
D) use of several possible outcomes to asses risk

Question

Quizplus · Accepted Answer

Simulation allows for a continuum of risk-return trade-offs to be considered in the decision-making process.

The Advantage of Using Simulation in the Capital Budgeting Process