Evaluating the Capacity of Standard Investment Appraisal Methods
2002-07-30
Research Paper
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The survey findings indicate the existence of gap between theory and practice of capital budgeting. Standard appraisal methods have shown a wider project value discrepancy, which is beyond and above the contingency limit. In addition, the research has found the growing trend in the use of value management models. The presence of correlation between the frequency of monitoring and project value discrepancy, and the absence of uniformity in the use of evaluation methods throughout the life span of a project are among the results of the study.
Keywords
- capital budgeting
- DCF methods
- investment appraisal
- value management techniques
- project analysis
- shareholdr value analysis
Classifications using
Journal of Economic Literature (JEL) Classification System
- L9 : Industry Studies: Transportation and Utilities
- L8 : Industry Studies: Services
- L6 : Industry Studies: Manufacturing
- G30 : Corporate Finance and Governance: General
- G31 : Capital Budgeting; Investment Policy
- M10 : Business Administration: General
- O32 : Management of Technological Innovation and R&D
- O22 : Project Analysis
Automatically Extracted Terms
- project
- model
- company
- method
- value
- appraisal
- sample
- discrepancy
- survey
- capital
- budgeting
- capital budgeting
- table
- project value discrepancy
- investment
- finance
- frequency
- practice
- management
- performance
