The simulation approach provides us with
A) a single value for the risk-adjusted net present value.
B) an approximation of the systematic risk level.
C) a probability distribution of the project's net present value or internal rate of return.
D) a graphic exposition of the year-by-year sequence of possible outcomes.

Question

Quizplus · Accepted Answer

The simulation approach provides a probability distribution of the project's net present value or internal rate of return, which illustrates the range of possible outcomes and associated probabilities. This allows for a more comprehensive analysis of the project's risk and potential return. Therefore, option C is the best choice.

The Simulation Approach Provides Us with