According to Remer & Nieto (1995) profitable capital investment results in the growth and prosperity of an economy. If
profitability is low, investment will decline. To correctly predict the profitability of the proposed investment, the investor
needs analytical tools. Several tools that can improve the capital investment decision making process of companies have
over the last four decades been proposed by the academic community (Farragher et al., 2001), to help managers and
investors to make wise economic decisions. Few of these techniques are summarized below. Afonso & Cunha (2009)
identified two broad categories of capital budgeting techniques to include the discounted cash flows method and the non
discounted cash flows method. While the discounted cash flows method considers the time value of money, the non
discounted cash flows method does not