The __________ decision rule is considered the "best" in principle.

A) Internal rate of return.
B) Payback period.
C) Average accounting return.
D) Net present value.
E) Profitability index.

Net Present Value

This signifies the net difference in present value terms of cash received versus cash paid out over an outlined time interval.

Internal Rate of Return

The discount rate at which the net present value of all cash flows (both positive and negative) from a project or investment equals zero.

Decision Rule

A guideline or criterion that aids in making choices between alternative courses of action.