Which of the following simulation outputs is likely to be most useful and easy to interpret? The output shows the distribution(s) of the project:
A) Earnings
B) Internal rate of return
C) Cash flows
D) Profits

Question

Quizplus · Accepted Answer

Cash flows are the most useful and easy to interpret output because they show the actual amounts of money that will be flowing in and out of the project over time. This information is crucial for making financial decisions and understanding the project's feasibility. The other outputs (earnings, internal rate of return, and profits) are all related to cash flows but do not provide as clear and comprehensive information.

Which of the Following Simulation Outputs Is Likely to Be