Which of the Following Decision Rules Might Best Be Used

question 50

Multiple Choice

Which of the following decision rules might best be used as a supplement to net present value (NPV) by a firm that favours liquidity?

• A)payback period
• B)equivalent annual annuity
• C)MIRR
• D)profitability index

---

Definitions:

Risk Checklists

Tools or lists used to identify, assess, and manage potential risks in a project or operation.

Project Logic Diagram

A visual representation of the logical sequencing of activities, tasks, and milestones required to achieve a project's objectives.

Milestone Schedule

A project management tool that outlines significant events or achievements as specific points along a project timeline.

Work Breakdown Structure

A hierarchical decomposition of a project into smaller components and work packages, making project management more manageable.