NPV와 IRR은 투자기회들의 수익성을 측정하는가? 수익성 척도로서 조건들

• 영문명: Do NPV and IRR Measure the Profitability of Investment Opportunities? Conditions as Measures of Profitability
• 발행기관: 한국산업경영시스템학회
• 저자명: 김진욱
• 간행물 정보: 『산업경영시스템학회지』제45권 제4호, 167~173쪽, 전체 7쪽
• 주제분류: 공학 > 산업공학
• 파일형태: PDF
• 발행일자: 2022.12.31

영문 초록

Investors must adopt profitable investment opportunities to maximize their wealth. Almost all investment, finance, engineering economics textbooks explain that net present value (NPV) measures the profitability (or value) of investment opportunities in absolute size, and internal rate of return (IRR) measures the profitability of investment opportunities in relative proportions. However, NPV is a measure of the relative size of the return on investment opportunity to do-nothing alternative. Moreover, IRR can occur in multiple investment opportunities and may not exist. To make matters worse, IRR and NPV also have conflicting problems in accept-or-reject decisions. In this study, the reason why NPV and IRR cannot accurately measure the profitability of investment opportunities is identified, and fundamental characteristics that investment opportunity profitability measures should have are presented.

목차

1. Introduction

2. Role and Weakness of NPV

3. IRR and Variants

4. Relationships between Measures of Profitability

5. Conclusions

키워드

Net Present Value Minimum Attractive Rate of Return Terminal Value Internal Rate of Return External Rate of Return