Better Ways to Make Investment Decisions

DOI

10.2991/aebmr.k.220603.058How to use a DOI?

Keywords

Net present value (NPV); Internal rate of return (IRR); Modified internal rate of return

Abstract

With the development of the economy, the focus of the company’s development shifts to investment decision-making. The indicators used in evaluating investment options are divided into discounted and non-discounted indicators. Discounted indicators take the time value factor into account, including net present value, present value index, and internal rate of return. On the other hand, the time value of money is not considered by non-discounted indicators, which have payback period, accounting return period, etc. And the approaches of net present value and internal rate of return, as the two methods with the largest range of applications, are often debated on which one is better. This paper will analyse this issue, the advantages and disadvantages of these two methods, and whether the modified solutions have the perfect answer for the company’s investment decision.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Ke Hua
PY  - 2022
DA  - 2022/07/01
TI  - Better Ways to Make Investment Decisions
BT  - Proceedings of the 2022 2nd International Conference on Enterprise Management and Economic Development (ICEMED 2022)
PB  - Atlantis Press
SP  - 353
EP  - 357
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220603.058
DO  - 10.2991/aebmr.k.220603.058
ID  - Hua2022
ER  -