Using Simulation Has a Few Drawbacks

question 50

True/False

Using simulation has a few drawbacks. Individual cash flows have to be estimated subjectively which can be difficult.

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Definitions:

Situational

Relating to or dependent upon a particular set of circumstances or context at a given time.

Actual

Real and existing in fact, not merely potential or theoretical.

Perceived

Recognized, seen, or interpreted by a person in a certain way, based on sensory input and subjective interpretation.

Self-concept

An individual's perception of themselves, including beliefs about one's abilities, appearance, and personality.