The Applications of NPV in Different Types of Markets
- 10.2991/assehr.k.211209.171How to use a DOI?
- NPV; complete market; incomplete market; transformation curve; capital line
The net present value of your project is the present value of the cash flows at the required rate of return compared to your initial investment. In practice, it is a method of calculating the return on investment for a project or expenditure. This paper introduces some major methods to evaluate investment risk but focuses on the characteristics of the NPV method. The applications of the NPV method in different fields are also introduced. Using data from the provided example question, I developed models of change in the transformation curve in the complete and incomplete market. The advantages, disadvantages, and limitations of NPV are also be analyzed. Some recommendations for using the NPV method is presented.
- © 2021 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 - Simin Le PY - 2021 DA - 2021/12/15 TI - The Applications of NPV in Different Types of Markets BT - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) PB - Atlantis Press SP - 1054 EP - 1059 SN - 2352-5428 UR - https://doi.org/10.2991/assehr.k.211209.171 DO - 10.2991/assehr.k.211209.171 ID - Le2021 ER -