Using Capital Budgeting Techniques for Evaluation of Performance of Companies Listed in TSE
Subject Areas : Financial Knowledge of Securities Analysis
Keywords: Pay back period, accounting rate of return, Net Present Value, internal rate of
, 
, return, profitability index, inverse pay back period,
Abstract :
In this paper we discuss the use of capital budgeting techniques forselection of investment projects in pharmaceutical and cement industrieslisted in Tehran Stock Exchange. For period of 20002-20006Our findings show that when management use the net present valuemethod for selection of investment projects, the profitability of investmentproject is higher than projects selected by other techniques.