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Literature Review on the Net Present Value Method of Project Investment Decision
- 1 JiangXi University of finance and economics
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Abstract
Net present value method is one of the most commonly used evaluation methods in enterprise investment decision, which has great influence on the success of investment. Its research has important theoretical reference significance for enterprise investment decision. This article provides the current status of NPV in actual investment practice and decision making. This paper summarizes the similarities and differences of the definition of net present value from the related theories, concepts, formulas and economic significance. This paper further discusses the advantages and limitations of its application in theory and practice, and draws a relatively widely accepted conclusion about the advantages and limitations of net present value by elaborating the viewpoints of many scholars. Then, the potential optimization measures of net present value method are introduced. Finally, on the basis of summarizing the main viewpoints and contents of the existing research, the possible future research trends and directions of NPV are put forward.
Keywords
investment decision, net present value, NPV
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Cite this article
Su,C. (2024). Literature Review on the Net Present Value Method of Project Investment Decision. Advances in Economics, Management and Political Sciences,60,60-66.
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Volume title: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
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