Which of the Following Decision Rules Is Best Defined as the Amount

question 55

Multiple Choice

Which of the following decision rules is best defined as the amount of time it takes to pay back the initial investment?

• A) internal rate of return (IRR)
• B) profitability index
• C) net present value (NPV)
• D) payback period

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Definitions:

Arbitration

A method of dispute resolution where a neutral third party (the arbitrator) makes a binding decision, outside of a courtroom.

Compulsory

Required by law or a rule; obligatory, leaving no option for non-compliance.

Lifetime Appointments

Positions, often in the judicial branch, where the appointee serves for the remainder of their life, unless they resign, retire, or are removed through impeachment.

U.S. Courts of Appeals

Intermediate federal appellate courts that review decisions of federal district courts, regulatory commissions, and other federal courts.