According to the text, in order to develop a distribution of possible net present values from international projects, a firm should use:

Question

Quizplus · Accepted Answer

In order to develop a distribution of possible net present values from international projects, a firm should use simulation. Simulation allows for the consideration of multiple variables and their potential outcomes, providing a more accurate representation of project risk and potential returns. The other options listed (risk-adjusted discount rate, payback period, and certainty equivalents) are methods used in financial analysis, but they do not enable the creation of a distribution of possible outcomes like simulation does.

According to the Text, in Order to Develop a Distribution