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31 July, 07:13

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)

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Answers (1)
  1. 31 July, 09:27
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    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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