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

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The Introduction of NPV and IRR

Authors
Ruoxin Yan1, *, †, Yijie Zhang2, *, †, yiz010@ucsd.edu
1School of Economics and Statistics, Guangzhou University, Guangzhou 511400, China
2John Muir College, University of California San Diego, La Jolla CA 92093, the United States
†

These authors contributed equally.

*Corresponding author. Email: gzdx_xz@gzhu.edu.cn
Corresponding Authors
Ruoxin Yan, Yijie Zhangyiz010@ucsd.edu
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.241How to use a DOI?
Keywords
NPV; IRR; Investment; risk-adjusted
Abstract

This paper aims to present the initial concept of NPV and IRR by an example of a question to calculate and answer the question for extending contexts of NPV and IRR from the example. Besides, the paper uses the formula to build each question’s process, which makes a systematic solution for leading to other concepts of NPV and IRR. The main goal of this study is to introduce concepts of NPV and IRR by solving the question, proposing a hypothesis to help a reader logically and precisely understand the concepts of NPV and IRR. Meanwhile, it will show examples of NPV and IRR to illustrate and come up with our hypothesis. An extra part makes NPV and IRR, and two different methods companies use to determine the investment by understanding the advantages and disadvantages of NPV and IRR to help you decide which is the best for your company’s situation. By investigating NPV and IRR, the context of the paper will be as methods to help people gain financial value.

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
10.2991/aebmr.k.220307.241How 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

risenwbib
TY  - CONF
AU  - Ruoxin Yan
AU  - Yijie Zhang
PY  - 2022
DA  - 2022/03/26
TI  - The Introduction of NPV and IRR
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 1472
EP  - 1476
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.241
DO  - 10.2991/aebmr.k.220307.241
ID  - Yan2022
ER  -