AN ANALYSIS OF THE USE OF DISCOUNTED CASH FLOW METHODS

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The study explores capital budgeting methods employed in real estate development, revealing that over 90% of firms utilize a combination of NPV and IRR methods for project evaluation. While traditional methods like the payback period are still prevalent, the research highlights a significant shift towards more sophisticated approaches. Additionally, methods such as the profitability index and return on equity are noted, though the adoption of decision tree and real option analyses remains minimal. The findings indicate a growing convergence between theory and practice in capital budgeting.