Which of the Following Decision Rules Might Best Be Used

question 42

Multiple Choice

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

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

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Definitions:

Dodo Bird Verdict

A metaphor stemming from Alice in Wonderland and used in psychology to suggest that different forms of therapy are equally effective.

Psychotherapy

A treatment method for mental health conditions involving talking with a mental health professional to explore thoughts, feelings, and behaviors to achieve desired change.

Hostile Attitude

Exhibiting aggression or animosity towards others or towards specific ideas.

DSM-IV-TR

The fourth edition, text revision, of the Diagnostic and Statistical Manual of Mental Disorders, a guide used by clinicians to diagnose mental disorders.