Capital budgeting decisions using the discounted cash flow method

Capital budgeting techniques using discounted fuzzy versus probabilistic cash flows

Risk analysis involves the development of the probability distribution for the measure of effectiveness. The risk associated with an investment alternative is generally either given as the possibility of an unfavorable value of the measure of effectiveness or measured by the variance of the measure of effectiveness. In an uncertain economic decision environment, an expert’s knowledge about disc...

Capital budgeting problems with fuzzy cash flows∗

We consider the internal rate of return (IRR) decision rule in capital budgeting problems with fuzzy cash flows. The possibility distribution of the IRR at any r ≥ 0, is defined to be the degree of possibility that the (fuzzy) net present value of the project with discount factor r equals to zero. Generalizing our earlier results on fuzzy capital budegeting problems [5] we show that the possibi...

The Capital Budgeting Decisions of Small Businesses

How Do Cfos Make Capital Budgeting and Capital Structure Decisions?

Improving capital budgeting decisions with real options

M A N A G E M E N T A C C O U N T I N G Q U A R T E R L Y S U M M E R 2 0 0 8 , V O L . 9 , N O . 4 T he process of evaluating the desirability of long-term investment proposals is referred to as “capital budgeting.” Making optimum capital budgeting decisions (e.g., whether to accept or reject a proposed project), often requires recognizing and correctly accounting for flexibilities associated ...