The purpose of this paper is to provide additional empirical evidence about capital budgeting practices in an emerging economy.
The study utilizes a questionnaire and interview to collect data from respondents.
The results show that the JIC give almost equal importance to the discounted and undiscounted cash flow methods in evaluating capital investment projects. It appeared also that the most frequent used technique is the profitability index followed by the payback period.
Based on these results, the researchers recommend putting a great attention to apply the concepts and techniques of capital budgeting in an appropriate manner. The corporations should also consider importance of information technology and its applications in capital budgeting.
This is the first study applied on the capital budgeting practices and its related issues in the JIC.
