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Most corporations measure the value of a project in terms of which of the following?

A) discount value

B) discount factor

C) future value (FV)

D) present value (PV)

Respuesta :

Answer:

D) Present Value (PV)

Explanation:

To measure the value of a project, firms calculate the Net Present Value (NPV) of the project. In a net present value analysis a firm forecasts the future cash flows, discounts the cash flows using a discount factor and then net the discounted cash flows A project is usually undertaken if the the NPV of the project is positive and is not undertaken is the NPV is negative.

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