THE APPLICABILITY AND USAGE OF NPV AND IRR CAPITAL BUDGETING TECHNIQUES
Abstract
Capital budgeting plays an essential role in a firm's long‐term viability and survival. The capital budgeting process includes: identification of potential projects, prediction of possible outcomes, project selection, financing and implementation of the chosen project, and monitoring project performance (Mukherjee and Henderson, 1987). Although economic considerations should govern the capital budgeting decision, individual opinions and preferences often become primary factors affecting project selection.
Citation
Agnes Cheng, C.S., Kite, D. and Radtke, R. (1994), "THE APPLICABILITY AND USAGE OF NPV AND IRR CAPITAL BUDGETING TECHNIQUES", Managerial Finance, Vol. 20 No. 7, pp. 10-36. https://doi.org/10.1108/eb018479
Publisher
:MCB UP Ltd
Copyright © 1994, MCB UP Limited