+1 862 207 3288 1. Why is it true, in general, that a failure to adjust expected cash flows for expected inflation biases the calculated NPV downward?
2. Define (a) simulation analysis, (b) scenario analysis, and (c) sensitivity analysis. If AT&T were considering two investments, one calling for the expenditure of $20 million to develop a satellite communications system and the other involving the expenditure of $30,000 for a new truck, on which one would the company be more likely to use simulation analysis?
