A Systematic Literature Review on the Traditional NPV Model and Its Improved Versions
- https://doi.org/10.2991/aebmr.k.220307.407How to use a DOI?
- Traditional NPV; Max-NPV; Fuzzy NPV; DNPV; Application
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.
- © 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 -