The Discussion about the NPV and the Valuation

Abstract

This essay is about the importance, the accuracy and the application of investment valuation, along with the necessary evaluation and analysis. This article mainly writes about how to use valuation method to evaluate some investment projects, different risks different profits, different profits different returns. And what we need to do is we need to invest a certain amount of assets in different projects, and we need to use a limited formula or method to figure out how to allocate the money in order to maximize the returns. Although the valuation method is an inaccurate algorithm, it can give a relatively accurate value, which is convenient to compare the different benefits brought by different choices, so as to choose the better one. Different projects have different valuation methods, such as bond, stock. In addition, inflation is an important problem for earnings, so we need to use these calculations to figure out its net present value. After all, the same amount of property has different values at different stages. Sometimes the quantity of property goes up, but its value does not necessarily go up all the time.