Question: In building a simulation for a financial model A. mutiple variables (or assumptions) are changed at the same time to determine the impact on the
In building a simulation for a financial model
A. mutiple variables (or assumptions) are changed at the same time to determine the impact on the net present value of the project. O
B. a probability distribution is set for variables (or assumptions) and multiple sets of possible cash flows and net present values are computed using random draws from the distributions. O
C. the expected return and standard deviation of the initial cash outlay is used to calculate the probability of a negative net present value. O
D. a single variable (or assumption) is changed to determine the how much the net present value of the project changes when that variable is changed.
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