What are the advantages and disadvantages of NPV indicators?

Net present value Net present value is the difference between the discounted value of future cash flow generated by investment and the investment cost of the project. If the net present value is greater than zero, the scheme is feasible. The greater the net present value, the better the scheme and the better the investment benefit. Net present value index is an index reflecting the profitability of project investment. Decision criteria: NPV ≥0 scheme is feasible; The scheme with the maximum net present value of 0 is the optimal scheme. Advantages: the time value of funds is considered, and the evaluation of investment economy is enhanced; Considering the whole process of net cash flow, it embodies the unity of liquidity and profitability; Considering investment risk, high discount rate is used for high risk and low discount rate is used for low risk. Disadvantages: the calculation of net present value is troublesome and difficult to master; It is difficult to determine the measurement of net cash flow and discount rate; Can not directly reflect the actual income level of investment projects from a dynamic perspective; When the project investment is not equal, it is impossible to accurately judge the advantages and disadvantages of the scheme.