Would you be able to create Monte Carlo scenarios to see how sensitive NPV and IRR to changes in prices or quantities? Propose two scenarios and provide the descriptive statistics including the histogram for each simulation (i.e., descriptive statistics for the NPV and IRR due to changes in prices or quantities).

Answer rating: 100% (QA)

Capital budgeting is by definition forward looking When dealing with expected resources and demands uncertainty is a major factor Sensitivity analysis is a statistical tool that determines how consequ... View the full answer