Capital Budgeting Methods Used in Some European Countries and in the United States

This paper provides a comprehensive overview of capital budgeting methods preferred by corporate managers in some European countries and in the United States. On the basis of international research findings and our empirical survey, three important observations can be made: (1) a considerable amount of European and US corporations calculate the indicator of the payback period; (2) the net present value and the internal rate of return are the two most frequently used discounted cash-flow methods; (3) companies in France and Hungary used the profitability index more often than companies in other surveyed countries.