Capital Budgeting Essay

9587 Words39 Pages

Internship Report on
“CAPITAL BUDGETING” by ANITHA.R
USN: 1AM13MBA02
Submitted to VISVESVARAYATECHNOLOGICALUNIVERSITY, BELGAUM
In partial fulfillment of the requirements for the award of the degree of
MASTER OFBUSINESSADMINISTRATION

Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
Dr H S Adithya Sameernath.k
Associate Professor AGM Finance & Admin
AMC Engineering College Manjushree Extrusions Ltd. DEPARTMENT OF MANAGEMENT STUDIES
AMC ENGINEERING COLLEGE
(Affiliated to Visvesvaraya Technological …show more content…

The firm’s capital budgeting decisions mostly includes accumulation, acquisition, disposition, rejuvenation and replacement of the long term fixed assets. It mainly based on the estimation of future events which is a complex problem for forecasting the future cashflows of an investment.
Investment Decision making is also called as Capital Budgeting, Capital Expenditure Decision, Planning Capital Expenditure and Analysis of Capital Expenditure.
As the resources of an any company are limited, a right choice has to be through the various investment proposals by evaluating their relative merit. It is clear that some techniques should be followed for making evaluation of investment proposals. Capital budgeting decision is considered to be one of the appraising techniques of investment decisions.
Capital Budgeting is a planning process helps the company to look ahead and formalize future goals to determine organization’s longterm investments. It is a Budget for major capital, investment, expenditures …show more content…

IMPORTANCE OF THE STUDY
Capital Budgeting is very essential in financial decision making:
Capital budgeting helps the company in taking decisions during making Expansion, Establishment of new projects etc.
While undertaking new projects and at the time of removing the decline stage products etc., It avoids unnecessary expenditure
The firm’s successful performance depends on appropriate capital budgeting analysis because capital investment decisions can improve cash flows.
Capital investment incurs high cost, since many of the firms have scarce capital resources.
Decisions taken are irreversible regarding capital, without much financial loss to the firm.
To choose the best out of many alternatives proposals financial analysis regarding capital investment has to be formulates by using various proposals.. METHODOLOGY OF THE STUDY
The following methodology has been adopted in order to achieve the objective . Taken as a whole project report has been prepared through collection of the information by both primary and secondary

Open Document