Universal Journal of Management Vol. 4(6), pp. 348 - 360
DOI: 10.13189/ujm.2016.040604
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Capital Budgeting Methods Used in Some European Countries and in the United States


Klara, Szucsne Markovics *
Faculty of Economics, Institute of Business Sciences, University of Miskolc, Hungary

ABSTRACT

This paper provides a comprehensive overview of capital budgeting methods preferred by corporate managers in some European countries and in the United States. On the basis of international research findings and our empirical survey, three important observations can be made: (1) a considerable amount of European and US corporations calculate the indicator of the payback period; (2) the net present value and the internal rate of return are the two most frequently used discounted cash-flow methods; (3) companies in France and Hungary used the profitability index more often than companies in other surveyed countries.

KEYWORDS
Capital Budgeting, Project Valuation, Investment Decisions, Net Present Value, Internal Rate of Return, Payback Period

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Klara, Szucsne Markovics , "Capital Budgeting Methods Used in Some European Countries and in the United States," Universal Journal of Management, Vol. 4, No. 6, pp. 348 - 360, 2016. DOI: 10.13189/ujm.2016.040604.

(b). APA Format:
Klara, Szucsne Markovics (2016). Capital Budgeting Methods Used in Some European Countries and in the United States. Universal Journal of Management, 4(6), 348 - 360. DOI: 10.13189/ujm.2016.040604.