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You can calculate the value of information by what formula?

A. Time taken to derive the information, plus money needed to derive the information
B. Resources needed to produce the information, multiplied by resources gained from the information
C. Time taken to derive the information, multiplied by money needed to derive the information
D. Resources needed to produce the information, plus resources gained from the information

User Martins
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1 Answer

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Final answer:

The value of information is often assessed through the Present Discounted Value of future profits and the Reserves to Production ratio, which relate to the financial value of assets and resource longevity.

Step-by-step explanation:

When calculating the value of information, there isn't a universal formula provided in the resources referenced, however, the concepts of Present Discounted Value (PDV) and the Reserves to Production (R/P) ratio are related to assessing the worth of assets over time. The PDV helps determine the current value of a future stream of profits, which is essential in financial analyses and investment decisions. It involves discounting future benefits to their present value at a given discount rate. Moreover, the R/P ratio is an intuitive measure to estimate how long a resource will last at the current consumption rate by dividing the reserves by annual production. These methods reflect the potential utility of the resources and can help in making informed decisions about their allocation and consumption.

User Michael Stoll
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