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References (8)
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The Value of Waiting to InvestNBER Working Paper Series
- Publisher
- Emerald Publishing
- Copyright
- Copyright © Emerald Group Publishing Limited
- ISSN
- 0307-4358
- DOI
- 10.1108/eb013667
- Publisher site
- See Article on Publisher Site
Abstract
Managerial practice differs from standard capital budgeting theory in a number of respects. For example, managers often take projects that have negative NPV e.g., R & D investments due to their flexibility, synergy strategic positioning etc. Furthermore, managers continue to use accountingbased measures in capital budgeting even though NPV is widely accepted as the only correct valuation measure. In fact, managers and strategists probably have always attempted to intuitively attach value to a variety of strategic and other concerns, even when they couldn't quantify them.
Journal
Managerial Finance – Emerald Publishing
Published: Feb 1, 1991