CHECK THESE SAMPLES OF Net Present Value in the Valuation of Investment Projects
MIRR method aims to overcome some of the glaring limitations that IRR presents in valuing of investment projects in organizations.... While common consensus suggests that MIRR is a better valuation method than IRR investment method, the overwhelming use of IRR technique in comparison to MIRR arouses considerable curiosity.... MIRR valuation Methods and Number Date Submitted Abstract A contentious debate ranges with regard to business valuations using Internal Rate of Return (IRR) and Modified Internal Rate of Return (MIRR)....
9 Pages
(2250 words)
Research Paper
The techniques included use discounted cash flows and net present value analysis.... The net present value approach presents management as being passive to their Capital investment.... Real options are definite alternatives to an investment.... However, real options valuation looks at management as being active and they revolve interests with varying market trends.... Real options valuation accounts for uncertainties in the future of definite parameters that define the value of the business....
6 Pages
(1500 words)
Essay
These methods are; Internal Rate of Return (IRR), net present value (NPV), and Discounted Payback Period (Arnold, 2002).... f 10 percent is taken as the trial discount rate, it is seen to be just right, as the present value of the future yield of 10 is exactly 100 which is equal to the present cost so that the net present value of the investment is zero, and 10 percent is, therefore, the internal rate of return in this example.... he internal rate of return (IRR) is the rate of return (or the rate of discount) which would make the discounted present value of the expected future returns of investment exactly equal to the current cost of the investment (Arnold, 2002)....
15 Pages
(3750 words)
Literature review
The rate of dividend that a company has paid will reflect on the valuation of its stock.... This is followed by a valuation of current and future earnings.... It is this value which will reflect the profitability and investment possibilities in the company.... There are two popular methods for stock valuation.... The other method of valuation is through Cash Flow Analysis.... quity Evaluation: the term equity evaluation can be simply termed as the value of stock owned by a company....
17 Pages
(4250 words)
Assignment
Investment appraisal is defined as the'Evaluation of the attractiveness of an investment proposal, using methods such as average rate of return (ARR), internal rate of return (IRR), net present value (NPV), or payback period (PP).... As the initial investments differ for the three proposals, the profitability index (PI) is computed in order to arrive at a common measure to compare the profitability of the three projects.... In order to analyze the sensitivity of the three projects, the Internal rate of return (IRR) is used, as it gives a clear picture of the margin of safety....
8 Pages
(2000 words)
Case Study
he logic behind use of net present value in evaluating investment projects lies on the magnitude of a computed net present value of a particular project.... An author of this research "Theoretical Rationale for the net present value" seeks to explain the theoretical rationale for the NPV (net present value) approach to investment appraisal and compare the strengths and weaknesses of the NPV approach to two other commonly used approaches.... net present value technique is one of the project appraisal techniques that are used by project managers or investors to determine whether the project is profitable....
12 Pages
(3000 words)
Research Paper
MIRR method aims to overcome some of the glaring limitations that IRR presents in valuing investment projects in organizations.... MIRR allows the value of the investment under query to show the impact of both the future and the present value of currencies at different times in the life of a project.... While common consensus suggests that MIRR is a better valuation method than IRR investment method, the overwhelming use of IRR.... While common consensus suggests that MIRR is a better valuation method than IRR investment method, the overwhelming use of IRR technique in comparison to MIRR arouses considerable curiosity....
9 Pages
(2250 words)
Essay
This paper prepares a report on net present value, the concept of payback period, internal rate of return, etc.... This paper prepares a report on net present value, the concept of payback period, internal rate of return, etc.... This paper prepares a report on net present value, the concept of payback period, internal rate of return, and the accounting rate of return as investment consideration techniques that are suitable for the investing companies....
10 Pages
(2500 words)
Case Study