Abstract

The world today is facing an energy crisis, and new energy vehicle companies, mainly electric vehicles, will account for a large proportion of the future automotive market. In investment decision-making, the two most popular approaches for determining whether project investment is viable are the NPV method. In this paper, the NPV method and IRR method are used to evaluate the operating conditions of new energy automobile enterprises, and the investment value of each enterprise is judged by the two indicators of net present value and internal rate of return. First, after obtaining the data through the financial reports of new energy automobile companies, then calculate the NPV and IRR, and finally compare the NPV and IRR of each company to judge whether it is worth investing. In the NPV method, the enterprise with the maximum NPV is selected; in the IRR method, the enterprise with the maximum IRR is selected.

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