Which of the Following Are Advantages of Computer Simulation Over

question 22

Multiple Choice

Which of the following are advantages of computer simulation over analytical methods like PERT/CPM for predicting the probability that a project will complete by a deadline?

• A)It does not need to make as many simplifying assumptions
• B)It is more flexible about which probability distributions can be used
• C)It provides a solution more quickly
• D)All of the above
• E)a and b only

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Definitions:

Debt Financing

Debt financing involves raising capital through borrowing money that must be repaid over time, typically with interest, from external sources like banks or through issuing bonds.

Bankruptcy Costs

Expenses associated with the process of declaring and handling bankruptcy, including legal fees, administrative fees, and potential losses to creditors.

Miller and Modigliani

Refers to the theorem proposed by Franco Modigliani and Merton Miller, indicating that under certain market conditions, the valuation of a company is unaffected by its capital structure.

Debt Financing

The method of raising capital through borrowing, typically through loans or by issuing bonds.