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Which of the measures below is a direct measure of the projects contribution to the value...

Which of the measures below is a direct measure of the projects contribution to the value of the company in the market?

Select one:

a)payback period

b)internal rate of return

c)present worth

d)annual worth

e)future worth

f)external rate of return

business   finance   
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Answer #1

Select - (c) Present worth

Present worth considers time value of money and also, what you pay now and what the today's value of what you are going to receive from the project. With a positive present worth, wealth maximization is assured to business.Thus present worth method is a direct measure of contribution to company's wealth.

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