Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 60 , 05 January 2024
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Literature Review on the Net Present Value Method of Project Investment Decision
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Abstract
Net present value method is one of the most commonly used evaluation methods in enterprise investment decision, which has great influence on the success of investment. Its research has important theoretical reference significance for enterprise investment decision. This article provides the current status of NPV in actual investment practice and decision making. This paper summarizes the similarities and differences of the definition of net present value from the related theories, concepts, formulas and economic significance. This paper further discusses the advantages and limitations of its application in theory and practice, and draws a relatively widely accepted conclusion about the advantages and limitations of net present value by elaborating the viewpoints of many scholars. Then, the potential optimization measures of net present value method are introduced. Finally, on the basis of summarizing the main viewpoints and contents of the existing research, the possible future research trends and directions of NPV are put forward.
Keywords
investment decision, net present value, NPV
References
1. Zhanfeng Lu.Net present Value Method of Project Investment Decision.(2013). Hubei Social Sciences,11,86-88.
2. Xuechao Duan. Comparison of Real Option Method and Net present value Method in Investment Decision. (2010).Technology Wind,2,65-68.
3. Yonghong Deng.Comparison of Three Basic Methods of Investment Decision.(2007) Economic Research Guide,(S1)
4. Caixia Yan. On the Application of NPV Method in Capital Budget.(2013). Modern Economic Information,16.
5. Xiang Li and Bipeng Zeng. A Brief Analysis of the Application and Limitations of the Financial Evaluation Method of Net Present Value in the Investment Decision of Hydropower Station.(2015). SichuanWaterPower,34(z1).
6. Pingxiang Zhang. Net Present Value Method of Enterprise Project Investment Decision.(2020). Journal of Chongqing University of Technology,2.
7. Zhou Qishen and Qiu Ying. Improvement of Traditional Net Present Value Method.(2014). finance and accounting monthly,6.
8. Nalin.K. The Strategy Value of Flexibility: Reducing the Ability to Compromise.(2004). American Economic Review,3.
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11. Baoxiang Wei .Research on Improving the application of Net present Value in Project Investment Evaluation.(2013). On Economic Problems,6.
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-211-4
- ISBN (Online)
- 978-1-83558-212-1
- Published Date
- 05 January 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/60/20231156
- Copyright
- 05 January 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited