Comparison of Different Investment Decisions Linked with Discount Rate

DOI

10.2991/assehr.k.211209.340How to use a DOI?

Keywords

NPV; IRR; Payback method; Investment evaluation method; Company decision-making

Abstract

Millions of companies make their investment decisions every minute in the world. They evaluate which projects can bring the most benefits or cost the least to them and then invest in these profitable projects. Hence, companies must have one or more practical and useful investment evaluation methods to help them achieve the ideal gains. Based on the situation, this article will discuss the existing evaluation methods such as IRR and NPV rules, payback methods, probability index and venture capitalists in the market. It will compare these methods and summary their own pros and cons to draw a clear picture of the investment criteria. Since this article find all the methods are not perfectly applied to investment, further research and studies of the most suitable investment evaluation methods will be looking forward to being finished.

Copyright

© 2021 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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TY  - CONF
AU  - Siting Zhang
PY  - 2021
DA  - 2021/12/15
TI  - Comparison of Different Investment Decisions Linked with Discount Rate
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 2076
EP  - 2080
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.340
DO  - 10.2991/assehr.k.211209.340
ID  - Zhang2021
ER  -