Abstract
Various studies of international investment appraisal practices of US-based multinationals suggest that they largely fail to conform to theoretical ideas on project screening and fall short of those used for domestic projects. The findings of these American investigations are summarized. The survey that is the focus of this paper relates to international investment project appraisal practices of large UK companies. It is a unique study in the sense that it is the first British investigation of international capital appraisal procedures which applies statistical analysis to its results. Broadly, the findings are not dissimilar to those relating to US multinationals' practices. Particularly interesting is the finding that 22% of respondents use payback and/or accounting rate of return as their sole primary decision criterion. This reinforces the continuing need for a better conceptual framework for international investment appraisal.