most fortune 500 companies use NPV and CAPM to do their capital budgeting. VC firms like payback b/c they have 3-5 year window and then want to exit recall this: 6CB there are 6 ways to do capital budgeting – NPV is the “most optimal” one
Also, according the an amusing question by schweser, uneducated europeans working at small firms will use the payback method while educated americans at large corporations use NPV… … any bias in that answer!!!
mcf Wrote: ------------------------------------------------------- > Also, according the an amusing question by > schweser, uneducated europeans working at small > firms will use the payback method while educated > americans at large corporations use NPV… > > … any bias in that answer!!! CFAI has a hard on for NPV.
daj224 Wrote: ------------------------------------------------------- > mcf Wrote: > -------------------------------------------------- > ----- > > Also, according the an amusing question by > > schweser, uneducated europeans working at small > > firms will use the payback method while > educated > > americans at large corporations use NPV… > > > > … any bias in that answer!!! > > > CFAI has a hard on for NPV. LOL it is not really uneducated european! ahahaha so…which model uneducated americans use? 