The Monte Carlo simulation:?
A. ?can be useful for estimating a project's market risk.
B. ?uses probability distributions for variables as input data to estimate the project's net present value (NPV).
C. ?produces both an expected NPV (or IRR) and a measure of the riskiness of the NPV or IRR for different scenarios.
D. ?gives the exact outcome that can be expected from a project.
E. ?calculates NPV for a change in one key variable.
Answer: B
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Indicate whether the statement is true or false