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When Using Simulation to Analyze a Large Capital Project,the Decision

Question 23

Multiple Choice

When using simulation to analyze a large capital project,the decision rule is


A) there is no clear cut decision rule,but the probabilities will produce a more informed decision.
B) accept the project if the probability of a positive NPV is greater than 50%.
C) reject the project if the probability of a negative NPV is greater than 5%.
D) reject the project if the probability of a negative NPV is greater than 16%

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