Question: True/False questions: 1. Simulation models allow the analyst to test possible changes in the variables used in the model. 2. To account for risk an

True/False questions:

1. Simulation models allow the analyst to test possible changes in the variables used in the model.

2. To account for risk an alternative to adjusting the discount rate is the certainty equivalent which adjusts the cash flows.

3. Simulation models allow the analyst to test possible changes in the variables used in the model.

4. Choosing projects with returns equal to the company norm but having a higher level of risk will most likely lower the company's share price.

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