An advantage of the decision tree is that
A)it eliminates the need for calculating the cost of capital.
B)it eliminates the need for calculating probabilities.
C)it causes the analyst to consider important events that may occur in the course of the project,and decisions and actions that may have to be undertaken.
D)All of the above

Question

Quizplus · Accepted Answer

The advantage of decision tree is that it causes the analyst to consider important events that may occur in the course of the project, and decisions and actions that may have to be undertaken. It does require the calculation of probabilities and cost of capital in order to build the tree. Therefore, options A and B are incorrect.

An Advantage of the Decision Tree Is That