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)
E)market value

Question

Quizplus · Accepted Answer

Most corporations measure the value of a project in terms of its present value (PV). PV calculates the value of future cash flows in today's dollars, accounting for the time value of money through the use of a discount rate. This allows for a more accurate assessment of the project's potential profitability and helps companies make informed investment decisions. Options A, B, C, and E are not commonly used to measure the value of a project.

Most Corporations Measure the Value of a Project in Terms