Question

What is the first step in Simulation Analysis?

a.

Determining NPV

b.

Modeling the project

c.

Selecting values from probability distribution

d.

Plotting frequency distribution of NPV

Posted under IC 89 Management Accounting

Answer: (b).Modeling the project Explanation:The first step in Simulation Analysis is modeling the project, which shows the relationship of NPV with parameters and probable variables.

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Q. What is the first step in Simulation Analysis?
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