The Advantage of Using Simulation in the Capital Budgeting Process

Multiple Choice

The advantage of using simulation in the capital budgeting process is

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