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

A Systematic Literature Review on the Traditional NPV Model and Its Improved Versions

Authors
Qiyu Li1, *, , Qingyang Li2, , Donghan Xu3, , Shuyan Zhou4, *,
1College of Management and Economy, Tianjin University, Tianjin, 300072, China
2Business school, University of New South Wales, Sydney, 1466, Australia
3College of international education, Shandong University of Finance and Economics, Jinan, 250001, China
4School of Accounting, Central, University of Finance and Economics, Beijing, 100081, China

Those authors contributed equally.

Corresponding Authors
Qiyu Li, Shuyan Zhou
Available Online 26 March 2022.
DOI
https://doi.org/10.2991/aebmr.k.220307.407How to use a DOI?
Keywords
Traditional NPV; Max-NPV; Fuzzy NPV; DNPV; Application
Abstract

Based on the analyses of the usage scenarios and limitations of the traditional NPV model, this paper aims to introduce and compare three kinds of the most practical and representative versions of the improved NPV models. In this study, the traditional NPV model is first introduced; followed by analyses of its main defects, such as low flexibility, inability to quantify the value of options, and changes in discount rates that may lead to errors in results. Therefore, three improved NPV models are introduced including Max-NPV, Fuzzy NPV and DNPV. The development background, reasoning logic and application scenarios of each of the three modified models were demonstrated in detail. In the end, some feasible suggestions are given including how to select appropriate modified NPV in reality as well as the matters needed to pay attention to application. This paper could provide useful reference for the NPV related study in the future.

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.

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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.220307.407How 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  - Qiyu Li
AU  - Qingyang Li
AU  - Donghan Xu
AU  - Shuyan Zhou
PY  - 2022
DA  - 2022/03/26
TI  - A Systematic Literature Review on the Traditional NPV Model and Its Improved Versions
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2487
EP  - 2492
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.407
DO  - https://doi.org/10.2991/aebmr.k.220307.407
ID  - Li2022
ER  -