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

Investment Decision Analysis Based on NPV, IRR, and the Fisher Separation Theorem

Authors
Chen Tan1, *
1Urban international school, Toronto, Canada, M4P 1E8
*Corresponding author Email mail:guanghua.ren@gecacademy.cn
Corresponding Author
Chen Tan
Available Online 26 March 2022.
DOI
https://doi.org/10.2991/aebmr.k.220307.436How to use a DOI?
Keywords
NPV; IRR; Fisher model; neoclassical economics; neuroeconomics
Abstract

In today’s society, investment decision-making has become one of the main decisions of every large-scale company. The management and shareholders of the company conduct reasonable analysis and vote for high-quality investment plans. The paper mainly shows the impact of economic models on project decision-making, and mainly summarizes the relationship between the economic model NPV and IRR and its application loopholes in actual situations. The final results of the paper show that the economic models NPV and IRR have their own advantages and disadvantages, and they need to be used reasonably according to the situation. Second, investors do not have to follow economic models to make decisions. When faced with investment decisions, they should adapt to the current situation.

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.220307.436How 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  - Chen Tan
PY  - 2022
DA  - 2022/03/26
TI  - Investment Decision Analysis Based on NPV, IRR, and the Fisher Separation Theorem
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2680
EP  - 2684
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.436
DO  - https://doi.org/10.2991/aebmr.k.220307.436
ID  - Tan2022
ER  -