Question

When using simulation to analyze a large capital project, the decision rule is:
A) There is no clear cut decision rule, but the probabilities will produce a more informed decision.
B) Accept the project if the probability of a positive NPV is greater than 50%.
C) Reject the project if the probability of a negative NPV is greater than 5%
D) Reject the project if the probability of a negative NPV is greater than 16%

Answer

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