Trends in application of capital budgeting methods for investment projects evaluation
AbstractWe present results of an analysis and comparison of 46 studies (54 economic surveys) on capital budgeting methods for investment projects evaluation with emphasis on trends in application from 70s till present. We focus on three methods: net present value method, internal rate of return and payback period for purpose of confirmation/rejecting of a proposition that there exists a "gap" between theoretical recommendations and practice of financial managers in investment projects evaluation. We came to the conclusion of the existence of disproportionate perception between theoretical recommendations and practical application of selected methods. The conclusion confirmed the necessity of the discussion between scientists and financial managers in issue of the investment project evaluation.
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Bibliographic InfoArticle provided by University of Economics, Prague in its journal Ekonomika a Management.
Volume (Year): 2009 (2009)
Issue (Month): 1 ()
Postal: Redakce Ekonomika a management, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
Find related papers by JEL classification:
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
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