Why Would Data Need to Be Collected Prior to Conducting

question 19

Essay

Why would data need to be collected prior to conducting a simulation?

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Definitions:

IRRs

The Internal Rate of Return is a measurement used in the process of capital budgeting to assess the potential profitability of investments.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and satisfy its shareholders and creditors.

Capital Budgeting

The approach taken by a business to appraise potential key projects or investments.

Equity Investment

The act of putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit, primarily through the ownership of equity.