Capital budgeting in multi-national companies: A comparison analysis for Turkey based multi-national company

In this study, the methods considering the time value of money, in terms of capital budgeting and calculation methods are comparatively analyzed with a real case from the cement sector and the reason why Economic Value Added Method preferred is investigated. Comparative analysis model was applied in order to study the capital budgeting practices in companies, capital budgeting, capital budgeting in multinational companies, the importance of capital budgeting, methods of calculation using with the data of a real case investment project. Accordingly, in order to understand the profitability of investments, added value and economic return clearly, companies make assessments according to the calculation method of capital budgeting and take decisions in accordance with the results. Results of the study shows which methods and which parameters should be used with the advantages and disadvantages when companies assess investment projects in terms of capital budgeting also it is indicated that Economic Value Added method produces comprehensive and better results. Key Word : Capital Budgeting, Investment, Investment Project,Multi-National Company, Multi-National Capital Budgeting,Foreign Direct Capital Investment