Monte Carlo Simulation Involves the Following Steps

question 15

Multiple Choice

Monte Carlo simulation involves the following steps:
I. Step 1: Modeling the project
II. Step 2: Specifying probabilities
III. Step 3: Simulate the cash flows
IV. Step 4: Calculate present value

• A) I and II only
• B) I, II, and III only
• C) II, III, and IV only
• D) I, II, III, and IV

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