In a Decision Tree, the NPV to Make the Yes/no

question 21

Multiple Choice

In a decision tree, the NPV to make the yes/no decision is dependent on:

• A) only the cash flows from successful path.
• B) on the path where the probabilities add up to one.
• C) all cash flows and probabilities.
• D) only the cash flows and probabilities of the successful path.

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Definitions:

Disease

A state where an organism's normal functioning is disturbed, typically resulting in specific symptoms and signs.

Treatment

Medical care provided to a patient for an illness or injury, aimed at curing, relieving, or managing symptoms.

One-millionth

A fractional unit representing one part in a million of anything.

Gram

A metric unit of mass equal to one thousandth of a kilogram.