Evaluation Method Based on NPV and IRR

DOI

10.2991/aebmr.k.220603.133How to use a DOI?

Keywords

Net present value; Internal rate of return; Annualized net present value; Common year method

Abstract

In the modern market, many companies need to choose the most profitable project among different projects. Even in different industries such as catering, service, employment and so on also need to make the right choice. So developing an effective business strategy, analyzing and forecasting financial performance, and developing an effective working capital structure are very important. In this paper, I first meet the definition of the decision-making tools NPV and IRR. Then I compare the NPV and IRR which can help the managers to make a good choice in complex market conditions. At last, I use some examples to evaluate these two methods which can be benefit to decision-making. I hope this paper can provide some implications to corporate managers, investors, and regulators.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Yuna Liu
PY  - 2022
DA  - 2022/07/01
TI  - Evaluation Method Based on NPV and IRR
BT  - Proceedings of the 2022 2nd International Conference on Enterprise Management and Economic Development (ICEMED 2022)
PB  - Atlantis Press
SP  - 816
EP  - 820
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220603.133
DO  - 10.2991/aebmr.k.220603.133
ID  - Liu2022
ER  -