2013•Unpublished venueRequires access

Investment evaluation using net present value and factors` changes influence to the investment making decision

Veronika Uličná

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Abstract

The article is dedicated to investment valuation using net present value. It describes in what conditions the investment shall be accepted by company and in what conditions it is not appropriated to put financial resource to the investment. There are many factors which can cause net present value change during the investment making decisions. The article focused on input factors changes impact to the final making decision. Paper also compares expected rate of return with internal rate of return and it presents how the expected rate of return can raise to not threaten investment acceptation.

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What this paper is about

The article is dedicated to investment valuation using net present value. It describes in what conditions the investment shall be accepted by company and in what conditions it is not appropriated to put financial resource to the investment. There are many factors which can cause net present value change during the investment making decisions. The article focused on input factors changes impact to the final making decision. Paper also compares expected rate of return with internal rate of return and it presents how the expected rate of return can raise to not threaten investment acceptation.

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Available abstract

The article is dedicated to investment valuation using net present value. It describes in what conditions the investment shall be accepted by company and in what conditions it is not appropriated to put financial resource to the investment. There are many factors which can cause net present value change during the investment making decisions. The article focused on input factors changes impact to the final making decision. Paper also compares expected rate of return with internal rate of return and it presents how the expected rate of return can raise to not threaten investment acceptation.

Key concepts: Return on investment, Internal rate of return, Rate of return, Net present value, Investment performance, Modified internal rate of return, Investment (military), Valuation (finance)

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