Which of the Following Is Among the Questions That Financial

question 6

Multiple Choice

Which of the following is among the questions that financial analysts try to answer with simulation models?

• A) Mean and variance of a project NPV
• B) Probability that a project with have a negative NPV
• C) Probability that a company will have to borrow a certain amount during the next year
• D) Mean and variance of a company's profit during the next fiscal year
• E) All of these options

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Definitions:

Allowances

Reductions from the list price of goods or services, granted for various reasons such as defects or customer dissatisfaction.

Wage Base Limit

The maximum amount of income on which employees are required to pay certain taxes, such as social security taxes.

SUTA

The State Unemployment Tax Act, which mandates employers to pay state unemployment taxes to fund the unemployment compensation programs for workers in their state.

FUTA

The Federal Unemployment Tax Act (FUTA) is a United States federal law that imposes a payroll tax on employers to fund state workforce agencies.