Question

One can employ simulation models to

I) understand the project better;
II) better understand forecasted cash flows;
III) assess the project risk

a. I, II, and III
b. I only
c. II only
d. III only

Answer 1

Simulation models can be employed for multiple purposes in a project analysis, including understanding the project better, better understanding forecasted cash flows, and assessing the project risk.

Step-by-step explanation:

The correct answer is a. I, II, and III. Simulation models can be employed for multiple purposes in a project analysis. They can help in understanding the project better by simulating its behavior and outcomes. Additionally, simulation models can be used to analyze and forecast cash flows accurately and assess the project risk by simulating different scenarios and their potential impact on the project.