An Overview of the Capital B udgeting Techniques Practiced by the Companies of Dhaka Stock Exchange Limited

This study explores the capital budge ting techniques used by Bangladeshi companies in evaluating capital investment projec ts. For this study data were collected from the listed companies of Dhaka Stock Exchange Limited (DSE). The findings of the study reveal that the Net Present Value (NPV) is most preferred technique for evaluating investment projects in terms of profitability wh ile sensitivity analysis is used as a technique for assessing risk of the project. It is also documented t hat managers generally use more than one technique for evaluating investment pr ojects. However, they emphasize more on the result of Net Present Value (NPV) to select the right one from the conflicting results. In this study the return on investment (ROI) and net pr ofit margin are also observed as the other determinants of evaluating capital investment projects.