A Comparative Analysis of the Evaluation Techniques of Capital Budgeting in E-Commerce

Abstract

E-commerce has grown exponentially as the digital revolution reaches its peak. Most business transactions nowadays have the option of being done electronically or online through the Internet. In this growing field of e-commerce and with the increasing number of potential investments, intensive evaluation of a profitable proposal is essentially necessary in order to increase the value of the firm and avoid losses if possible. This paper aims to analyze the different e-commerce capital budgeting evaluation techniques by critiquing their formulas and identifying the corresponding advantages and disadvantages of using them. An introduction to capital budgeting and the key processes involved will also be presented.