CRITICAL ANALYSIS OF THE CONCEPT OF NET PRESENT VALUE OF INVESTMENTS PROJECTS
The critical analysis of the net present value, which represents one of the traditional most frequently used indicators of financial effectiveness of investment projects has been proved. Net present value is also considered as a base for fair value estimate of intangible assets on a company’s balanc...
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| Format: | Article |
| Language: | English |
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Publishing House of the State University of Management
2018-04-01
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| Series: | Вестник университета |
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| Online Access: | https://vestnik.guu.ru/jour/article/view/1007 |
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| _version_ | 1832541907935297536 |
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| author | A. Kuznetsov |
| author_facet | A. Kuznetsov |
| author_sort | A. Kuznetsov |
| collection | DOAJ |
| description | The critical analysis of the net present value, which represents one of the traditional most frequently used indicators of financial effectiveness of investment projects has been proved. Net present value is also considered as a base for fair value estimate of intangible assets on a company’s balance sheet. Within the analysis the answers to questions of every investor are given: how to correctly assess the net present value, what discount rate is better applied for cash flows and how to estimate the discount rate, whether an investor should immediately reject the project having a negative net present value, how to estimate weighted average cost of capital correctly and others. |
| format | Article |
| id | doaj-art-9a3a313d9b6f4af1977a6a03ec3dc8f2 |
| institution | Kabale University |
| issn | 1816-4277 2686-8415 |
| language | English |
| publishDate | 2018-04-01 |
| publisher | Publishing House of the State University of Management |
| record_format | Article |
| series | Вестник университета |
| spelling | doaj-art-9a3a313d9b6f4af1977a6a03ec3dc8f22025-02-04T08:27:55ZengPublishing House of the State University of ManagementВестник университета1816-42772686-84152018-04-010411912510.26425/1816-4277-2018-4-119-1251007CRITICAL ANALYSIS OF THE CONCEPT OF NET PRESENT VALUE OF INVESTMENTS PROJECTSA. Kuznetsov0National Research Moscow State University of Civil EngineeringThe critical analysis of the net present value, which represents one of the traditional most frequently used indicators of financial effectiveness of investment projects has been proved. Net present value is also considered as a base for fair value estimate of intangible assets on a company’s balance sheet. Within the analysis the answers to questions of every investor are given: how to correctly assess the net present value, what discount rate is better applied for cash flows and how to estimate the discount rate, whether an investor should immediately reject the project having a negative net present value, how to estimate weighted average cost of capital correctly and others.https://vestnik.guu.ru/jour/article/view/1007investment projectnet present valueevaluation effectivenessdiscount rateweighted average cost of capitalyieldinvested capital |
| spellingShingle | A. Kuznetsov CRITICAL ANALYSIS OF THE CONCEPT OF NET PRESENT VALUE OF INVESTMENTS PROJECTS Вестник университета investment project net present value evaluation effectiveness discount rate weighted average cost of capital yield invested capital |
| title | CRITICAL ANALYSIS OF THE CONCEPT OF NET PRESENT VALUE OF INVESTMENTS PROJECTS |
| title_full | CRITICAL ANALYSIS OF THE CONCEPT OF NET PRESENT VALUE OF INVESTMENTS PROJECTS |
| title_fullStr | CRITICAL ANALYSIS OF THE CONCEPT OF NET PRESENT VALUE OF INVESTMENTS PROJECTS |
| title_full_unstemmed | CRITICAL ANALYSIS OF THE CONCEPT OF NET PRESENT VALUE OF INVESTMENTS PROJECTS |
| title_short | CRITICAL ANALYSIS OF THE CONCEPT OF NET PRESENT VALUE OF INVESTMENTS PROJECTS |
| title_sort | critical analysis of the concept of net present value of investments projects |
| topic | investment project net present value evaluation effectiveness discount rate weighted average cost of capital yield invested capital |
| url | https://vestnik.guu.ru/jour/article/view/1007 |
| work_keys_str_mv | AT akuznetsov criticalanalysisoftheconceptofnetpresentvalueofinvestmentsprojects |