Use of Capital Budgeting Methods for Investment Project Evaluation in the Field of Civil Engineering‪.‬

INTRODUCTION Research carried out at the end of the last century shows that, the use of discounted cash flow methods for investment and project evaluations has increased over the previous few decades. Among these methods, the internal rate of return method (IRR) and the net present value method (NPV) were the most common. Klammer and Walker(1) stated that, in the USA "the use of discounting grew from 19 % in 1960 to 57 % in 1970", and their research established that the use of discounting in 1980 grew to 75 % in those projects dealing with the expansion of existing capacities. Similar conclusions for the UK were drawn by Pike(2), who established that the use of either the internal rate of return or net present value methods in large UK companies grew from 58 % to 84 % between 1975 and 1986. The aforementioned research raised questions about the use of capital budgeting methods in Slovenia. Special stress was placed on experts with education in civil engineering and companies who deal in this field of engineering.