The Advantage of Using Simulation in the Capital Budgeting Process

Multiple Choice

The advantage of using simulation in the capital budgeting process is

A) that it generates a continuum of risk-return tradeoffs rather than a single-point estimate.
B) the availability of a continuum of risk-return tradeoffs which may be used as the basis for decision making.
C) ease of calculation.
D) dependability of predetermined probability distributions.