At your $4$th of July gathering this year, a relative who wants to test your knowledge asks you how a financial analyst determines if an investment proposal will create wealth, that is$,$ will increase the value of the company. Which capital budgeting decision rule measures the expected increase in firm value from accepting an investment proposal, and is the correct answer to your annoying relative's question?

Group of answer choices

payback period

net present value

internal rate of return

none of the above measures calculate the expected increase in firm value

net income