Measure of Worth Decision Rule (a) Annual worth (1) Measure of worth is greater than 0 (b) Benefit-cost ratio (2) Measure of worth is greater than 1 (c) External rate of return (3) Measure of worth is greater than MARR (d) Future worth (e) Internal rate of return (f) Present worth
Measure of Worth Decision Rule (a) Annual worth (1) Measure of worth is greater than 0 (b) Benefit-cost ratio (2) Measure of worth is greater than 1 (c) External rate of return (3) Measure of worth is greater than MARR (d) Future worth (e) Internal rate of return (f) Present worth
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Match the measures of worth in the first column with an appropriate decision rule for preferring a project over “do nothing.”
Transcribed Image Text:Measure of Worth
Decision Rule
(a) Annual worth
(1) Measure of worth is greater than 0
(b) Benefit-cost ratio
(2) Measure of worth is greater than 1
(c) External rate of return (3) Measure of worth is greater than MARR
(d) Future worth
(e) Internal rate of return
(f) Present worth
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