CREATING VALUE: THE APPROPRIATE USE OF CAPITAL BUDGETING
Abstract
Traditional approaches to capital budgeting may be inadequate in today's complex business environment. This paper identifies problems with a narrow approach to capital budgeting and suggests several improvements. In particular, an example illustrates an option‐based approach to valuing managerial flexibility.
Citation
Ehrhardt, M.C. and Reeve, J.M. (1991), "CREATING VALUE: THE APPROPRIATE USE OF CAPITAL BUDGETING", Managerial Finance, Vol. 17 No. 5, pp. 3-13. https://doi.org/10.1108/eb013679
Publisher
:MCB UP Ltd
Copyright © 1991, MCB UP Limited