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In Capital-Budgeting Decisions,simulation Analysis Gives a Probability Distribution Only for Cash

question 21

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In capital-budgeting decisions,simulation analysis gives a probability distribution only for cash flows.


Definitions:

Fixed Length

A predetermined or established length or duration that does not change.

Future Value

Future value is the value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Positive Rate Of Return

A situation where an investment or project yields a profit or return that exceeds the initial outlay.

Projects

Planned sets of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

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