What Are the Primary Advantages and Disadvantages of Applying Simulation

question 21

Essay

What are the primary advantages and disadvantages of applying simulation to capital budgeting risk analysis?

---

Definitions:

Demand

Demand refers to consumers' willingness and ability to purchase a product or service at a given price.

Supply Conditions

Factors that affect the quantity of a good or service that producers are willing and able to sell at a given price.

Excise Tax

A tax on the manufacture, sale, or consumption of certain goods and services within a country.

Tax Burden

The measure of the total amount of taxes paid by individuals or businesses, often expressed as a percentage of income or GDP.