The survey findings indicate the existence of gap between theory and practice of capital budgeting. Standard appraisal methods have shown a wider project value discrepancy, which is beyond and above the contingency limit. In addition, the research has found the growing trend in the use of value...

The validity of the NPV rule and the criticisms against IRR are evaluated using a capital amortization approach (CA) and the results presented. Negative or zero or no IRR is consistent with the net cash flow (NCF) when the sum of NCF is either zero or negative. Reinvestment, with non-normal NCF,...