Lisa considers an investment proposal. In order to decide whether to pursue it or not, she adds up all future profits over the duration of the project and divides the sum by the upfront cost. Which decision rule is Lisa using?

Question

Answer

Lisa is likely using the Net Present Value decision rule

Answer

None of the options are correct

Answer

Lisa is likely using a decision rule based on the Internal Rate of Return

Answer

Lisa is likely using the Payback Period method to make investment decisions

Crowdly

Lisa considers an investment proposal. In order to decide whether to pursue it o...

Want instant access to all verified answers on moodle.telt.unsw.edu.au?