Analysis of the Shortcomings of the Investment Decision Method and its Improvement

DOI

10.2991/assehr.k.211209.145How to use a DOI?

Keywords

investment decision method; Net Present Value; Internal Rate of Return; real options

Abstract

Investment decisions are an important part of the pre-investment process. The correct method of decision making for investment projects directly affects the investment benefit of the project. However, various investment decision methods and theoretical analyses have deficiencies. These deficiencies will affect the actual valuation results leading to poor decisions, losses to the business or missed investment opportunities for the benefit of the business. Therefore, there is a strong need to analyze and improve on the shortcomings in the investment decision-making methodology. This paper mainly analyses the problems in the current financial evaluation for investment decisions and the shortcomings of the evaluation methods. It then proposes corresponding improvement and refinement strategies in light of these shortcomings.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Chongpeng You
PY  - 2021
DA  - 2021/12/15
TI  - Analysis of the Shortcomings of the Investment Decision Method and its Improvement
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 892
EP  - 897
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.145
DO  - 10.2991/assehr.k.211209.145
ID  - You2021
ER  -