|
|
Article: Capital budgeting practices in the U.S. forest products industry: a reappraisal.
- Article from:
- Forest Products Journal
- Article date:
- December 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 Forest Products Society. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Abstract
This study examined the capital investment practices of publicly owned forest products firms in the United States in 2001 by replicating research reported by Cubbage and Redmond in 1985. The current study utilized a survey instrument to collect data that was identical to the Cubbage and Redmond, thereby allowing for direct comparison of data. Results indicate that discount cash flow techniques are the most preferred capital budgeting decision criteria used in the industry, similar to results reported by Cubbage and Redmond. However, there has been an increase in the use of the net present value methods, and, despite suggestions against its use in the ...