A decision rule and associated methodology for converting the NPV statistic into a rate-based metric is referred to as
A) NPV.
B) profitability index.
C) MIRR.
D) discounted payback.

Question

Quizplus · Accepted Answer

The profitability index is a rate-based metric derived from the NPV statistic, representing the ratio of the present value of future cash flows to the initial investment.

A Decision Rule and Associated Methodology for Converting the NPV