A Proposed Capital Budgeting Technique For Liquidity Constrained Small Businesses

Authors

  • John B. White Georgia Southern College
  • Morgan P. Miles Georgia Southern College

Abstract

Although the ad vantages of capital budgeting models using discounted cash flaws are well known, small businesses continue to rely on non-discounted techniques in making capital budgeting decisions. This paper analyzes the financial environment in which small businesses operate that makes traditional capital budgeting models inappropriate. A capital budgeting technique is developed that is sensitive to the needs of small businesses and also meets the three-fold criteria for capital budgeting methods.

 

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References

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Published

1990-06-03

Issue

Section

Articles