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Net Present Value Approach: Method for Economic Assessment of Innovation Projects

Procedia - Social and Behavioral Sciences · 2014 · Vol. 156 · pp. 506–512
Ondřej Žižlavský

Abstract

This paper is dedicated to the issue of innovative performance measurement. It focuses on techniques that can be employed for evaluation of single innovation project. The framework is based on detailed literature review and net present value (NPV) approach analysis. Furthermore, the paper investigates its pros and cons and discusses methods able to deal with NPV weaknesses. Used with care, these techniques can guide the management of innovation project by providing indications of its potential financial value.

Capital Investment and Risk AnalysisNet present valueValue (mathematics)Management scienceComputer scienceEngineering managementRisk analysis (engineering)EngineeringBusinessEconomicsProduction (economics)

Funding

  • Grantová Agentura České Republiky
Citations
308
FWCI
5.03
field-weighted impact
References
17
Percentile
95%
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Citations per year
References
Principles of corporate finance
Journal of Banking & Finance · 1982 · 1,003 citations
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