Financial analysts may attempt to determine which of the following with simulation models?
A) mean and variance of a project NPV
B) probability that a project with have a negative NPV
C) probability that a company will have to borrow a certain amount during the next year
D) mean and variance of a company's profit during the next fiscal year
E) all of these choices

Question

Quizplus · Accepted Answer

Financial analysts may use simulation models to determine the mean and variance of a project NPV (Option A), the probability that a project will have a negative NPV (Option B), the probability that a company will have to borrow a certain amount during the next year (Option C), or the mean and variance of a company's profit during the next fiscal year (Option D). Therefore, all of these choices (Option E) are possible with simulation models.

Financial Analysts May Attempt to Determine Which of the Following