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OBJECTIVES

This document outlines 8 objectives to investigate capital planning and budgeting methods used by organizations, evaluate various capital budgeting techniques like NPV, IRR, and payback period, study how risk and other factors influence capital budgeting decisions, assess application of strategies across sectors, and recognize best practices to recommend improvements.

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Akash kadam
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11 views

OBJECTIVES

This document outlines 8 objectives to investigate capital planning and budgeting methods used by organizations, evaluate various capital budgeting techniques like NPV, IRR, and payback period, study how risk and other factors influence capital budgeting decisions, assess application of strategies across sectors, and recognize best practices to recommend improvements.

Uploaded by

Akash kadam
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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OBJECTIVES:

1. To investigate the significance of capital planning in making financial choices and its effect on
the sustainability and long-term financial health of organisations.
2. To evaluate the various capital budgeting methods and procedures, including net present
value (NPV), internal rate of return (IRR), payback period, and profitability index, and to analyse
and compare them.
3. To study the role of risk evaluation and risk management in the selection of capital budgets,
taking into account elements including market risks, risks particular to individual projects, and
unpredictability of cash flow predictions.
4.To research how numerous elements, such as organisational goals, capital costs, market
dynamics, legal and policy frameworks, and macroeconomic situations, affect capital budgeting
decisions.
5.To evaluate the difficulties and restrictions posed by capital budgeting, including issues with
data accuracy, cash flow forecasting, project interdependencies, and psychological biases that
could influence judgement.
6. To assess the application of capital budgeting strategies in various businesses or sectors,
examining any discrepancies in methodology and selection criteria.
7. To investigate how decisions made during capital budgeting affect the total capital structure
and financial risk of organisations, including the best distribution of funds between debt and
equity financing.
8. To recognise best practises and takeaways from effective capital budgeting projects in order
to make recommendations for enhancing capital budgeting.

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