Q1) Chen (1995) examined the issue of whether firms significantly differ in the use of practice capital budgeting techniques.

Required:

As the information provided in the above mentioned article, answer the following questions:

(a)Discuss three major findings and policy implications of this research paper.

(b)The paper concluded that both DCF techniques are more important than payback technique in examining the viability of investment projects? Do you agree? Justify your answer with evidence

(c)Discuss the contribution of the paper in relation to the expansion of investment projects.

Note:

Shimin Chen, (1994) "An empirical examination of capital budgeting techniques: impact of investment types and firm characteristics.Cited by 108