The most general statement of the criterion for present worth analysis is which one of the following:
a. The criterion for present worth analysis is to determine the net present value of an investment by discounting all cash flows to their present value and comparing it to the initial investment cost.
b. The criterion for present worth analysis is to calculate the internal rate of return and compare it to a predetermined hurdle rate to determine if the investment is worthwhile.
c. The criterion for present worth analysis is to apply a cost-benefit analysis to determine if the benefits of an investment outweigh the costs, taking into account the time value of money.
d. The criterion for present worth analysis is to calculate the payback period of an investment and assess whether it meets a predetermined threshold for return on investment.
