The Analysis of Three Main Investment Criteria: NPV IRR and Payback Period
Authors
Haotian Dai1, a,*, †, Ningfan Li2, b, *, †, Yuhan Wang3, c, *, †, Xinrui Zhao4, d, *, †
1Kangqiao International School, 215332, Huaqiao, Kunshan China
2Main Campus, TAIE International Institute, M5B 2A1, Toronto, Canada
3Zhenhai High School of Zhejiang, 315000, NingBo China
4Shanghai Qibao Dwight High School, 200000, Shanghai China
†
These authors contributed equally.
*Corresponding author. Email: axrzhao_ray@qibaodwight.org
Corresponding Authors
Haotian Dai, Ningfan Li, Yuhan Wang, Xinrui Zhao
Available Online 26 March 2022.
- DOI
- 10.2991/aebmr.k.220307.028How to use a DOI?
- Keywords
- Net present value; Internal Rate of Return; Payback period
- Abstract
Net Present Value is a simple, straightforward measurement when judging investment projects. It considers the time value during the calculation, which converts the money from the future to the present value, However, it can miss leading the investor at a certain case. In this paper, we will mainly be focusing on the NPV, by elaborate on how it works in the case, the calculation of it, the history, the numerical analysis. Additionally, we will compare NPV with other similar tools including Internal Rate of Return and Payback period that are used to measuring the value of the project, by illustrating their advantages and disadvantages.
- Copyright
- © 2022 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Haotian Dai AU - Ningfan Li AU - Yuhan Wang AU - Xinrui Zhao PY - 2022 DA - 2022/03/26 TI - The Analysis of Three Main Investment Criteria: NPV IRR and Payback Period BT - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022) PB - Atlantis Press SP - 185 EP - 189 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.220307.028 DO - 10.2991/aebmr.k.220307.028 ID - Dai2022 ER -