The Applications of NPV in Different Types of Markets

DOI

10.2991/assehr.k.211209.171How to use a DOI?

Keywords

NPV; complete market; incomplete market; transformation curve; capital line

Abstract

The net present value of your project is the present value of the cash flows at the required rate of return compared to your initial investment. In practice, it is a method of calculating the return on investment for a project or expenditure. This paper introduces some major methods to evaluate investment risk but focuses on the characteristics of the NPV method. The applications of the NPV method in different fields are also introduced. Using data from the provided example question, I developed models of change in the transformation curve in the complete and incomplete market. The advantages, disadvantages, and limitations of NPV are also be analyzed. Some recommendations for using the NPV method is presented.

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  - Simin Le
PY  - 2021
DA  - 2021/12/15
TI  - The Applications of NPV in Different Types of Markets
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 1054
EP  - 1059
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.171
DO  - 10.2991/assehr.k.211209.171
ID  - Le2021
ER  -