Investment and Financing Decision Criteria Under Uncertainty: The Case of Ethiopian Companies

This project paper tried to investigate the Criteria used by Ethiopian Companies for accepting or rejecting investment or financing alternatives under the condition of risk or uncertainty. Contemporary financial literatures recommended that companies should use the investment and financing decisions criteria whether the decisions are made for the first time, for expansion or for replacement of the deteriorated asset(s). In contrary to these recommendations, Some Ethiopian companies use these criteria only at the time of initial investment and even that might be employed if they are forced by other bodies such as banks who extends loans to them.