Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

The Development and Usage of NPV and IRR and Their Comparison

Authors
Yi Wang1, *
1D’Amore-McKim School of Business, Northeastern University, MA 02115, Boston, USA
*Corresponding author. Email: wang.yi8@northeastern.edu
Corresponding Author
Yi Wang
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.334How to use a DOI?
Keywords
Net present value; Internal rate of return; Capital budgeting techniques
Abstract

Net present value (NPV) and internal rate of return (IRR) are two popular capital budgeting techniques in the modern economy. Almost all finance textbooks included these two concepts. The paper presents a review of NPV and IRR from the following perspectives and aims to provide a general understanding of NPV and IRR for the audience. The development of NPV and IRR will be discussed in this paper. The disadvantages and advantages of NPV and IRR will also be presented with detailed examples. The utilization of NPV and IRR in three counties, the United States, Finland, and Japan, is discussed to offer an overview of companies’ preference of decision methods in these three counties.

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.

Download article (PDF)

Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
10.2991/assehr.k.211209.334
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.334How to use a DOI?
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.

Cite this article

TY  - CONF
AU  - Yi Wang
PY  - 2021
DA  - 2021/12/15
TI  - The Development and Usage of NPV and IRR and Their Comparison
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 2044
EP  - 2048
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.334
DO  - 10.2991/assehr.k.211209.334
ID  - Wang2021
ER  -