A Survey of Capital Budgeting Methods Used by the Restaurant Indu
Journal of Hospitality Financial Management
The Professional Refereed Journal of the Association of Hospitality Financial
Management Educators
Volume 8 | Issue 1
Article 1
1-1-2000
A Survey of Capital Budgeting Methods Used by the Restaurant Industry
Robert A. Ashley
Stanley M. Atkinson
Stephen M. LeBruto
Follow this and additional works at: http://scholarworks.umass.edu/jhfm
Recommended Citation
Ashley, Robert A.; Atkinson, Stanley M.; and LeBruto, Stephen M. (2000) "A Survey of Capital Budgeting Methods Used by the
Restaurant Industry," Journal of Hospitality Financial Management: Vol. 8: Iss. 1, Article 1.
Available at: http://scholarworks.umass.edu/jhfm/vol8/iss1/1
This Refereed Article is brought to you for free and open access by ScholarWorks@UMass Amherst. It has been accepted for inclusion in Journal of
Hospitality Financial Management by an authorized administrator of ScholarWorks@UMass Amherst. For more information, please contact scholarworks@library.umass.edu. The Journal of Hospitality Financial Management. Volume 8, Number 1,2000
A SURVEY OF CAPITAL BUDGETING METHODS
USED BY THE RESTAURANT INDUSTRY
Robert A. Ashley
Stanley M. Atkinson and Stephen M. LeBruto
ABSTRACT
The purpose of this study was to determine what capital budgeting and cost of capital procedures are being used in the food service segment of the hospitality industry and to compare the responses, where possible, with those reported in the previous studies of capital budgeting techniques in the hospitality industry. The most popular primary capital budgeting techniques selected were the sophisticated or discounted cash flow methods, such as net present value and internal rate of return. The payback method was selected as a secondary technique.
Introduction
:
j i 1
: j The food service segment of the hospitality industry is rapidly growing. Entry by hospitality industry firms and others into these lines of business is not without risk. It is expected that such expansion will
The Professional Refereed Journal of the Association of Hospitality Financial
Management Educators
Volume 8 | Issue 1
Article 1
1-1-2000
A Survey of Capital Budgeting Methods Used by the Restaurant Industry
Robert A. Ashley
Stanley M. Atkinson
Stephen M. LeBruto
Follow this and additional works at: http://scholarworks.umass.edu/jhfm
Recommended Citation
Ashley, Robert A.; Atkinson, Stanley M.; and LeBruto, Stephen M. (2000) "A Survey of Capital Budgeting Methods Used by the
Restaurant Industry," Journal of Hospitality Financial Management: Vol. 8: Iss. 1, Article 1.
Available at: http://scholarworks.umass.edu/jhfm/vol8/iss1/1
This Refereed Article is brought to you for free and open access by ScholarWorks@UMass Amherst. It has been accepted for inclusion in Journal of
Hospitality Financial Management by an authorized administrator of ScholarWorks@UMass Amherst. For more information, please contact scholarworks@library.umass.edu. The Journal of Hospitality Financial Management. Volume 8, Number 1,2000
A SURVEY OF CAPITAL BUDGETING METHODS
USED BY THE RESTAURANT INDUSTRY
Robert A. Ashley
Stanley M. Atkinson and Stephen M. LeBruto
ABSTRACT
The purpose of this study was to determine what capital budgeting and cost of capital procedures are being used in the food service segment of the hospitality industry and to compare the responses, where possible, with those reported in the previous studies of capital budgeting techniques in the hospitality industry. The most popular primary capital budgeting techniques selected were the sophisticated or discounted cash flow methods, such as net present value and internal rate of return. The payback method was selected as a secondary technique.
Introduction
:
j i 1
: j The food service segment of the hospitality industry is rapidly growing. Entry by hospitality industry firms and others into these lines of business is not without risk. It is expected that such expansion will
References: Atkinson, S. M., & Labruto, S. M. (1997). A survey of capital budgeting used by the hotellgaming indusrty. The Journal of Hospitality Financial Management, 5 (I),23-31.