Cambodian Companies Embrace NPV Method for Capital Budgeting Decisions.
The study looked at how companies in Cambodia make decisions about big investments. They found that most companies use methods like payback period and NPV to decide if a project is worth it. Companies often adjust for risks like interest rates and business cycles by using a discount rate. Older companies are more likely to use NPV, while smaller investments tend to use the payback method. Companies with higher education backgrounds prefer using NPV and ARR for their capital budgeting decisions.