The Role of Non-Financial Factors in Rationalizing The Capital Budget Decisions

Abstract

This study presents a set of non-financial indicators that must be used in the process of evaluation and comparison between the available alternatives for investment projects, which are often ignored in the Iraqi environment, either due to a lack of interest in their importance or impact on decision-making, or due to t Therefore, the purpose of this research is to verify the custom of assessing investment projects and to investigate the level of consideration given to both monetary and non-monetary considerations. In addition, this research seeks to explain why so many once high-scoring investment projects have now been shown to be unsustainable. The findings highlight the most critical theoretical features, approaches, and procedures utilized in appraising conventional and cutting-edge investment projects. The results also indicate several non-financial elements that are important in rationalizing capital budget choices. If considered, it helps to rationalize the investment choice and sheds light on the gaps that exist in the processes and instruments used to create conventional capital budgets. Give an answer to the research question and some suggestions on how to solve it.