When a particular project might have very uncertain cash flows, the Monte Carlo simulation technique can be used to measure the net present value (NPV) of the cash flows to understand the outcomes for worst case scenario and best case scenario.

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The Answer of When a particular project might have very uncertain cash flows, the Monte Carlo simulation technique can be used to measure the net present value (NPV) of the cash flows to understand the outcomes for worst case scenario and best case scenario.

When a Particular Project Might Have Very Uncertain Cash Flows