An Advantage of Using a Computer Versus a Manual Approach

question 24

True/False

An advantage of using a computer versus a manual approach when performing a simulation is that it often takes only seconds versus hours to reach a steady-state result.

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Capital Investments

Funds spent by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to increase its long-term revenue.

Discounting Techniques

Methods used in finance to determine the present value of future cash flows or income.

Interest Rate

The proportion of an amount of money that is charged for borrowing or using it, usually represented as a yearly percentage.