Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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
https://doi.org/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.

Download article (PDF)

Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.220307.028How to use a DOI?
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  - https://doi.org/10.2991/aebmr.k.220307.028
ID  - Dai2022
ER  -