Journal of
Public Administration and Policy Research

  • Abbreviation: J. Public Adm. Policy Res.
  • Language: English
  • ISSN: 2141-2480
  • DOI: 10.5897/JPAPR
  • Start Year: 2009
  • Published Articles: 147

Full Length Research Paper

Capital budgeting practices: A comparative study between a port company in Brazil and in Spain

Rogerio Joao Lunkes
  • Rogerio Joao Lunkes
  • Pos-doutorado em Contabilidade e Professor da Universidade Federal de Santa Catarina - UFSC.
  • Google Scholar
Vicente Ripoll-Feliu
  • Vicente Ripoll-Feliu
  • Doutor em Economia e Professor da Universidad de Valencia.
  • Google Scholar
Arturo Giner-Fillol
  • Arturo Giner-Fillol
  • Doutor em Contabilidade e Diretor da Autoridad Portuaria de Valencia.
  • Google Scholar
Fabricia Silva da Rosa
  • Fabricia Silva da Rosa
  • Pos-doutorado em Contabilidade e Professora da Universidade Federal de Santa Catarina - UFSC.
  • Google Scholar

  •  Received: 16 October 2014
  •  Accepted: 27 April 2015
  •  Published: 30 April 2015


This study aims to analyze the capital budgeting practices used in port company in Brazil and another in Spain from a comparative perspective. To meet this objective an empirical research was conducted to study these two ports and a questionnaire was administered to collect data. The results showed that the Brazilian port uses only the internal rate of return for capital budgeting analysis combined with the random rate to determine the minimum acceptable return, and scenario analysis to assess investment risks. The Spanish port, compared to the Brazilian one, uses all methods, including payback, internal rate of return, net present value, real options valuation, and weighted average capital cost to determine the minimum rate of return, and scenario and sensitivity analyses, simulation, and decision tree to assess investment risks.

Key words: Capital budgeting, techniques, port, Brazil, Spain.