Economics, Econometrics and Finance
7 years ago

Over half of Jordanian companies rely on Net Present Value for investment decisions

1 view
International Journal of Economics and Finance
The Extent of Using Capital Budgeting Techniques in Evaluating Manager’s Investments Projects Decisions (A Case Study on Jordanian Industrial Companies)
Osama Samih Shaban, Ziad Al-Zubi, Ahmad Adel Jamil Abdallah

Paper Summary

The article explores how companies in Jordan make decisions about which projects to invest in. They looked at different methods like Net Present Value, Internal Rate of Return, and Payback Period. A survey was done on industrial companies in Jordan, and the results showed that 58% use Net Present Value, 22% use Payback Period, and 12% use Internal Rate of Return. Some companies also use other methods like Accounting Rate of Return and Profitability Index. The study aims to help companies choose the best way to evaluate their investment projects.

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