Net Present Value (NPV)

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Written by Deepthi Tharaka Parana Liyanage Don- s203116

Abstract

The financial appraisal is a method used to evaluate whether a proposed project, program, or portfolio is worthwhile by considering the benefits and costs that result from its execution [1]. Investment decisions of the management are critical to a company since it decides the future of the company Cite error: Closing </ref> missing for <ref> tag [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12]

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  1. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named Häcker
  2. ↑ Ferrari, C., Bottasso, A., Conti, M. and Tei, A., Ch. 5 - Investment Appraisal. In: Economic role of transport infrastructure: Theory and models, (Elsevier, 2018), pp. 85-114, https://doi.org/10.1016/C2016-0-03558-1
  3. ↑ Konstantin P. and Konstantin M., Ch. 4 - Investment Appraisal Methods. In: Power and Energy Systems Engineering Economics, (Springer, Cham, 2018), pp. 39-64, https://doi.org/10.1007/978-3-319-72383-9_4
  4. ↑ Poggensee K. and Poggensee J., Ch. 3 - Dynamic Investment Calculation Methods. In: Investment Valuation and Appraisal, (Springer, Cham, 2021), pp. 85-140, https://doi.org/10.1007/978-3-030-62440-8
  5. ↑ Ing E. and Lester A., Ch. 5 - Business case and Ch. 6 - Investment Appraisal. In: Project Management, Planning and Control. 7th Edition, (Elsevier, 2017), pp. 25-36, https://doi.org/10.1016/B978-0-08-102020-3.00006-1
  6. ↑ Bora, B., Comparison between net present value and internal rate of return, International Journal of Research in Finance and Marketing, (2015), 5(12), pp.61-71
  7. ↑ LOCK, D., Project management. 10th edition, (Farnham, Surrey, England, Gower Pub., 2013).
  8. ↑ Žižlavský, O., Net present value approach: method for economic assessment of innovation projects. Procedia-Social and Behavioral Sciences, 19th International Scientific Conference, Economics and Management, 156 (2014), pp. 506-512.
  9. ↑ AXELOS, Managing Successful Projects with PRINCE2, 6th Edition, (The Stationery Office Ltd, 2017).
  10. ↑ AXELOS, and Office Cabinet., Managing Successful Programmes, 2011 Edition, (The Stationery Office Ltd, 2011).
  11. ↑ AXELOS, Office of Government Commerce, Kilford, C., Management of Portfolios, 2011 Edition, (The Stationery Office Ltd, 2011).
  12. ↑ International Organization for Standardization (ISO, 2021), Project, programme and portfolio management – Context and concepts (DS/ISO 21502:2021).