According to the text, in order to develop a distribution of possible net present values from international projects, a firm should use:
A) a risk-adjusted discount rate.
B) a payback period.
C) certainty equivalents.
D) simulation.

Question

Quizplus · Accepted Answer

A firm should use simulation to develop a distribution of possible net present values from international projects. This involves creating a model that incorporates various input assumptions and running multiple simulations to generate a range of possible outcomes. This approach allows for a more comprehensive analysis of risks and uncertainties associated with international projects.

According to the Text, in Order to Develop a Distribution