2022
DOI: 10.2991/aebmr.k.220603.135
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A Literature Review on the Net Present Value (NPV) Valuation Method

Abstract: Evaluating different projects is an essential part of capital investment for the firm's future success. Among several evaluation methods, the net present value (NPV) methodology enjoys the highest prevalence. NPV method allows investors to objectively evaluate the efficacy and appeal, as well as compare investment projects that differ in scope, duration, or predicted profit. This article aims to illustrate the basic characteristics of the NPV method, as well as the benefits and shortcomings while applying it. … Show more

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Cited by 7 publications
(3 citation statements)
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“…The net present value (NPV) corresponds to the difference between the initial investment cost and the present value of the cash flows projected in the future. A positive NPV means that the project will generate a greater amount of income than the investment made, which makes the project financially attractive (Shou, 2022). Calculating the market value (NPV) is crucial because it allows you to determine whether a project is profitable in financial terms, facilitates the comparison of several projects to choose the most profitable one, and considers the time value of money by discounting future cash flows.…”
Section: Chapter 5 Pre-investment Study: Human Resources Studymentioning
confidence: 99%
“…The net present value (NPV) corresponds to the difference between the initial investment cost and the present value of the cash flows projected in the future. A positive NPV means that the project will generate a greater amount of income than the investment made, which makes the project financially attractive (Shou, 2022). Calculating the market value (NPV) is crucial because it allows you to determine whether a project is profitable in financial terms, facilitates the comparison of several projects to choose the most profitable one, and considers the time value of money by discounting future cash flows.…”
Section: Chapter 5 Pre-investment Study: Human Resources Studymentioning
confidence: 99%
“…NPV is a financial metric used to determine the profitability of an investment project by comparing the total benefits generated by the project with its total costs (Shou, 2022). In the present study, the various benefits associated with the recycling project are presented in Table 3, which include revenue generated from the sale of agricultural, raw cocoon, milk, and fish production.…”
Section: Net Present Value (Npv)mentioning
confidence: 99%
“…Di antara beberapa metode evaluasi, metodologi NPV (lihat persamaan 1) mempunyai prevalensi tertinggi. Metode NPV memungkinkan investor untuk mengevaluasi secara objektif kemanjuran dan daya tariknya, serta membandingkan proyek investasi yang berbeda dalam cakupan, durasi, atau prediksi keuntungan [11].…”
Section: Analisa Ekonomiunclassified